CENVAT- PROVISION FOR NON MOVING SPARES.

This query is : Resolved

VISHWANATH (Querist)
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07 May 2011 WE ARE PROVIDING 50% VALUE OF STORES AND SPARES AS NON MOVING SPARES ON THE ITEMS NOT MOVED FOR MORE THAN 5 YEARS.

A) IN VIEW OF CHANGE IN THE CENVAT RULE ON PROVISION FOR NON MOVING SPARES? WHETHER WE CAN DISCONTINUE MAKING PROVISION?

B) CAN WE WITHDRAW THE ENTIRE PROVISION SOFAR WE MADE.

U S Sharma

U S Sharma (Expert)
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14 May 2011 cenvat available only if the spares are put into use,
is there any specific reason for non use of the goods? in other ways we say that it was not needed for your concern? if its true then you have to reverse whole the duty taken on this head.

alternate

put in use is just accounting process, shifting of goods from warehouse to plant and machinery, then if they get scrapped at same day even, credit is abailable.

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