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seshadev sahoo (Querist)
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26 May 2011 A Assessee purchased/Import a machines for manufacturing purpose. But a incident held after one month of it purchased and machine burnt totaly after its installation. Then what will be the procedure for the 50% credit taken. Is it will be reversed or credit will be admissible.

Thanks.

U S Sharma

U S Sharma (Expert)
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26 May 2011 please share, the method adopted by assessee to square off the value in fixed asset,

if he sells the goods as scrap, then take 100% duty credit and pay duty on clearence value

if he claim to insurance or any other measure to reimubrse, viz claim from manufacturer, then he has to reverse full credit taken.

seshadev sahoo

seshadev sahoo (Querist)
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29 May 2011 Sir one thing I want to say if we sold as scrap then reversed the duty as per transaction value. But who define or certify that the machine is totaly loose its productivity and became scrap.

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