ED reversed - Scrap Sales

This query is : Resolved

K.MASTHAN BAVA (Querist)
Follow

26 October 2010
Dear Sir,

We purchased Magnitic Bricks (Capital Goods), due to fire accident it is damaged before put to use. We got insurance claim and written off from books (CWIP).

Now we want to sell it as a Scrap,since we already reversed Cenvat Credit taken, are we need to discharge Excise duty on Scrap Sales (Scrap Transaction Value).
Please advise us.

regards
K.MASTHAN BAVA
ZUARI CEMENT LTD
KADAPA (D.T), A.P

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

26 October 2010 If the proof for reversal of credit exosts, no further duty need be paid. Refer to duty reversal date in invoice.

K.MASTHAN BAVA

K.MASTHAN BAVA (Querist)
Follow

26 October 2010 Dear Sir,

Thanks for your reply. Kindly send me if any provision/ case laws to support the same if available.

regards
K.MASTHAN BAVA
ZUARI CEMENT LTD

S. Banerjee

S. Banerjee (Expert)
Follow

27 October 2010 Mr. Masthan Bava,
When you have not availed Cenvat Credit rather reversed why you are going to sale those in that way?
Just sale it as GARBAGE and credited to Misc Income A/c. I think you have understood my view.
Thanks, S. Banerjee

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now