Reimbursement of CENVAT Amount

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Chandan Mukherjee (Querist)

30 November 2010 Dear Sir,

1.We have purchased a capital goods in the year 2005, we have taken the CENVAT credit as per CE rules. Depreciation also claimed on the said gods excluding the CENVAT amount.
in 4 years the value of the goods become nil after depreciation charged. Now we want sell out the same, How to sell it and what impact will come on CENVAT amount?

2. We have to separate companies. i.e one sponge iron and power. The entry gate is same for the both unit. Now we are procuring the same raw materials for the both units, How we shall take credit for the said RM in an Invoice issued by the supplier?

Rajesh Kumar

Rajesh Kumar (Expert)

30 November 2010 1. Capital goods shall be cleared from the factory after payment of a duty of cenvat credit availed less 2.5% per quarter.
2. RM can go to one unit. That unit will take credit. After receipt of the material, part of the material meant for other units can be transferred to the other unit through the procedure of inputs cleared as such.

Chandan Mukherjee

Chandan Mukherjee (Querist)

01 December 2010 Dear Sir,

1st reply not very clear to me. if possible please let me know briefly.

2nd is very much clear to me.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

01 December 2010 4 years means 16 quarters
therefore 2.5x 16 = 40%
40% credit can be retained.

Chandan Mukherjee

Chandan Mukherjee (Querist)

09 May 2014 Dear Sir,

We have a manufacturing unit in West Bengal. We manufacturing finished goods which is sale to the market. My problem is that during the production we are using 3 types of RM say 300 Kgs and we are getting FG 100kgs, the balance materials becoming water and there is least chance recover the RM or FG from that water.

Now my question is what will be done for this huge loss. Should we declare the manufacturing process before the AC by stating the fact or reverse the CENVAT duties. If we should the CENVAT Credit reverse the company may be shutdown soon.

Please suggest us and oblige at the earliest.

Thanking you,
Yours faithfully,
Chandan Mukherjee
Kolkata

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