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Effect of exice duty

855 views 3 replies

pl guide me on the following matter :

a company purchse raw material from supplier. company paid excise duty on such raw material and take cenvat credit on the same. a final product was made using that raw material and was lying at warehouse intended for sell. due to fire all finished goods destroyed. whether cenvat credit available on such raw material  ?  

Replies (3)

I THINK CENVAT CREDIT CANT BE AVAILED BECAUSE AS PER THE CENVAT CREDIT RULES CENVAT CREDIT IS AVAILED OF ONL THOSE INPUTS OR RAW MATERIAL THAT ARE USED IN OR IN PROCESS OF MANUFACTURING .....MEANS IF ANY RAW MATERIAL GOT SPOILED WHILE PRODUCTION PROCESS THAN IT IS ALLOWED TO TAKE CENVAT CREDIT OF IT....BUT IF ANY RAW MATERIAL OR INPUTS GOT DESTROYED, PILFERAGE JUST LYING IN THE WAREHOUSE , IS NOT ALLOWED TO CENVAT CREDIT..............

 

PLEASE CORRECT ME IF I AM WRONG........

thanks for immediate reply,

can u pl provide me the same in the form of section or rules ??

You are not even required to reverse the credit taken on inputs contained in semi-finished goods destroyed in the fire since the requirement of Cenvat Credit Rules that the inputs should have been used in manufacture, had been fulfilled


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