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Cenvat rules for inprocess rejections

369 views 3 replies

Jeswani

General manager

29 Points Joined February 2014

Please advice if CENVAT availed on input materials needs to be reversed if upon some inhouse processes found rejected and can't be used further and were scraped and sold on payment of duty.

Replies (3)

Arun Kumar Singh

GST Advocate

15220 Points Joined January 2009

Loss of inputs during the manufacturing proces, cenvat credit is availble on entire quantity of inputs.

Jeswani

General manager

29 Points Joined February 2014

Thanks Arunkumarji. Any relevant excise Rule to this effect? As excise HQ Preventive team is making us reverse credit for three years and interest and penalty. Thanks

kumar hattanna

Officer - Excise

525 Points Joined July 2013

you can send back to supplier by reversing input credit by making an invoice as per rule 11 of central excise rule 2002 , please refer 3(5) of cenvat credit rule-2004.