Company A is Manufacturer. It procures Raw materials from outsiders. Some raw materials which are procured are damaged in the stores. Hence Company A decides to Scrap the Raw materials. My Query is: Should the "Company A" reverse the CENVAT credit of such raw materials, which was utlised earlier at the time of receipt of the material? If yes please educate me with the rule reference.
10 June 2015
The goods has been return to the same buyer then duty of excise will be reversed. if you want to destroy the scrap in your premises then you can avail the cenvat credit. If you sale the scrap then duty will be paid on scrap.
CAclubindia
