Rule 4(5)(a)

Goods first received by Manufacturer and then sent to Jobworker


We know that on receipt of goods by manufacturer, he immediately claims CENVAT on the same

However, if such goods are later sent to jobworker, they move out of factory


However no Excise duty is payable in such cases as per rule 4(5)(a)) of CCR, which says that Cenvat credit will be allowed on same if they are received back within 180 days/ 2 years in case of Capital Goods


The manufacturer has to maintain appropriate records to prove that these are received within the period of 180 days/2 years



The Goods may be sent to Jobworker for any purpose like

  • further processing,
  • testing,
  • repairing,
  • re-conditioning or
  • for the manufacture of intermediate goods necessary for the manufacture of final products


Goods Sent Directly to Jobworker

The credit can be availed even if any inputs or capital goods are directly sent to a job worker without their being first brought to the premises of the manufacturer/ output service

The period of 180 days or 2 years, will be counted from the date of receipt of such goods by the job worker


Goods Not Received Within 180 days/2 years

However, if they are received after 180 days/2 years, Cenvat taken on them need to be reversed


However, if they are later received after 180 days/2 years, still Cenvat can be retaken on these


Note:-The condition of return within 2 years is not in case of jigs, fixtures, moulds, dies.

This is because these are generally consumed during production

Hence, even if these are not received back within 2 years, still input available on the same


Effect of Amendment

Till 28.2.15

From 1.3.2015

Period of return was

180 days for both Inputs and Capital Goods




(except tools/dies/jogs/fixtures)


Period of return is

180 days for Inputs



2 years for Capital Goods


(except tools/dies/jogs/fixtures)


No provision for goods directly sent to Jobworker

Now Goods can be directly sent to Jobworker

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.