Cenvat cr reversal

As the inputs are destroyed before being put to use, CENVAT credit needs to be reversed. However, there are judgments which say that interest will not be applicable in such cases.

If the inputs have been issued to production and then before use it is scrapped due to poor workmanship of quality defect there is a case for availing the credit. There are a no of decisions allowingcredit post issue to production,.