reversal of cenvat credit

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... reversal of cenvat credit
Query (Issue) Started By: - S VENKAT Dated:- 7-7-2016 Last Reply Date:- 7-7-2016 Central Excise
Got 3 Replies
Central Excise
A manufacturer imported an item whic .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... h he uses in manufacture as raw material. If he issues that material to customer as replacement(under warranty), should the manufacturer reverse the cenvat credit availed? Reply By Ganeshan Kalyani: .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... The Reply: Sir, the input credit is eligible if it is used in or in relation to manufacturing of Dutiable goods. In your case you have not used it in manufacturing process instead have removed it as .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... it is. Hence the condition of input tax credit is not satisfied and therefore you are not eligible for input credit. Now that you have taken the credit you need to reverse the same. This is my view. T .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hanks. Reply By KASTURI SETHI: The Reply: I concur with the views of Sh.Ganeshan Kalyani, Sir. It is a case of replacement though under warranty period. Goods are not available in the ;why cenvat cr .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... edit against those goods (inputs) should stand in cenvat credit account. Amount should be reversed and may be taken again the after receipt of the replaced goods. Reply By S VENKAT: The Reply: Thank .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... you verymuch for your kind replies Ganeshan sir and Kasturi ji.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X