11 March 2014
Company is manufacturing forging items, there is 1:1 ratio of Input-Output. During the processing some quantity are rejected due to Quality inspection and at the end of year those quantities are sale as iron scrap, 30 percent of Input Cenvat credit is utilized for the payment of duty on scrap sale from its cenvat credit which was taken on its input purchase and 70 percent of balance Input Cenvat credit is utilized for other output.
My que is.... whether company can utilise that whole cenvat credit or thay should reverse the balance 70 percent of cenvat credit?
CAclubindia
