Reversal of cenvat under rule 3(5) for as such removal

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2016 Dear Expert,

We have Exported some Spare parts under LUT. Now Dept. is asking to reverse CENVAT availed under rule 3(5) for these spare parts As such export coz these were not used in manufacture of final product.

Kindly suggest your view and justification to reply.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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04 August 2016 The department is saying correct. Rule 3(5) says that an amount equal to cenvat credit availed is required to be paid if inputs or capital goods are removed from factory/premises of service provider as such.