Cenvat Credit on sample and replacement invoices, Central Excise

[Mathurthi RamKumar]

Dear All,

Greetings of the day.. Kindly confirm that cenvat credit of samples and replacement is claimable or not. (i.e some times machinery supplier send replacement parts with excise invoice. They shows basic amount as discount and excise invoice as per cenvat rule)

Kindly guide me.

Regards

M.RamKumar

Posts / Replies

[MUKUND THAKKAR]

Dear M,Ramkumar,

if you are cleared your defective part on payment of excise duty than you can availed cenvat credit.

[Pradeep Khatri]

Dear Mathurthi,

Proportioned CENVAT credit and Input Tax Credit, if any, needs to be reversed to avail the CENVAT credit and Input Tax Credit on replaced parts etc. On samples, if these are being used in or in relation to the manufacturing of finished goods then you can claim otherwise not.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Naveed S]

If machine is under warranty and such replacement parts are under warranty period, then cenvat credit can be availed, provided the damaged part is returned back to the supplier on excise invoice and on reversal of duty