cenvat credit on removal of scrap on nil rate of duty

This query is : Resolved

RAM SAINI (Querist)
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08 March 2010
we are despatching our plastic scrap @nil rate of duty under notification 10/2006 dt. 01.0.2006

our product iv cannula(90183930)is dutiable @ 4% under notification 10/2006 amended by 58/2008

my query is that
have we to reverse the cenvat credit to excise duty as we are despatching scrap @ nill rate of duty
as for the exempted goods we are not liable to take the cenvat credit

pls advice

Thanks & rgds

RK Saini

SANJAY JAIN

SANJAY JAIN (Expert)
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09 March 2010 In view of the definition of final products given in the CENVAT Credit Rules,2004, final products includes scrap as well. This has been explained in the Para 3.2 of Chapter 5 of Supplementary Instructions. As such taking scrap as final product, the all provisions regarding exempted goods would be applied and accordingly due treatment under Rule 6 of the CENVAT Credit Rules, 2004 is required to be done.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).