A CONSIGNMENT OF 1000KG OF INPUT WAS RECEIVED. THE EXCISE DUTY PAID AS PER THE INVOICE WAS RS 10,000.WHILE THE INPUT WAS BEING UPLOADED,50KG WERE DAMAGED AND WERE FOUND TO BE NOT USABLE.
THEN WHAT IS THE TREAMENT OF CENVAT CREDIT
A CONSIGNMENT OF 1000KG OF INPUT WAS RECEIVED. THE EXCISE DUTY PAID AS PER THE INVOICE WAS RS 10,000.WHILE THE INPUT WAS BEING UPLOADED,50KG WERE DAMAGED AND WERE FOUND TO BE NOT USABLE.
THEN WHAT IS THE TREAMENT OF CENVAT CREDIT
The CENVAT Cr. availed in respect of the damaged goods is to be reveresed because as per the Central Excise Act, input means input used "in or in relation to" Manufacture or Prodocution of Final Product therefore, as the damaged goods were found to be unsuitable for usage as such, CENVAT Cr. needs to be reversed.
Nikhil Baheti
CAclubindia
