My clients sugar of rs 50 laks destroyed in flood. His N P is hardly 2%. To cover this loss, he has to do turnover of rs 25 cr. The Govt is not going to pay him a single rupee which it should do to support him. Now the law will reverse his I T C of rs 245000 plus interest plus penalty. Is it not a Pathani Law? We should point out this issue to F M. Kishor.
I .don't think ITC reversal is mandatory in case goods destroy due to natural calamities (Flood) , but if department asking .for reversal , then it's rediculous. Infact govt should support the business giving them relief grants & support them