Sir, We are a Excise Manufacturing-SSi Unit involved in the field automation . Availing CENVAT and filing quarterly ER-3 with Ex.duty payment. * We had undertaken Job work from another Manufacturer against which 90% of the inputs/components procured by them. *These materials we send to our JOB worker for machine assembling -Partial work *Balance work we finish from our factory and on completion final goods will issuing to the Principal Manufacturer with claiming labour charge only. *My doubt is that shall we utilise our components/ inputs for same manufacturing ?if yes.Is it attract Excise duty levy or not? *Cenvat availed against the components utilised for Job Work should be reversed or not? *Kindly advice.

The question is not clear. If you are permitted to do job work and the goods are returned to the pricipal mfr, the principal mfr has to pay duty and he can take credit for the inpurs used. You have to pay duty ony for the goods manufactued and cleared by you and only for the inputs used for this manufacture credit can be taken. No credit can be taken for inputs used for job work.