Dear Sir, We have imported one new capital good machine recently. Now we have decided to send this to our sub-contractor premise for processing the sub contract work for us. In this connection, we would like to know your valuable opinion for the following matter; 1. What is the procedure / document to be used for this transfer? 2. How long we can keep this CG in Sub contractor premise? 3. Can we avail the CENVAT Credit when it is not in our possession? 4. Any other things to be done Rgds, NK

It is assumed that the capital goods are sent to ajob worker for the manufacurere of intermediate goods for the manufacture of final products. Rule 4(5)(a)(ii) and (iii) has allowed cenvat credit on CG even if sent to a job worker. You may send the goods on an invoice or challan as the case may be showing the details. Normally the period is for two years and if not received back wihtin the specified period you may pay an amount equivalent to the credit taken. However you can take the credit again when the goods are received back in the factory. Hence there is no relevance for the period for which the CG can be kept with the job worker. If not received back within two years reverse credit and when received back again you can take the credit.