13 September 2010
A plant and machinery was purchased on 1-4-2009. 50% of cenvat credit was taken on the same day. It was sold on 31-01-2010 after being put to use. Now should only 50% of the cenvat credit claimed should be reversed on 31-01-2010 or should the assessse first claim the balance 50% cenvat credit on 31-01-2010 and then reverse the full cenvat credit claimed as the rules say that if the capital goods are sold in the same financial year the entire amount of cenvat credit should be reversed.
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