Whether reversal of Cenvat credit availed is to be done?
This query is : Open
12 February 2011
XYZ ltd,Lucknow purchased plastic granules valued at 116000(inclusive of taxes) for manu. plastic chairs.It availed Cenvat credit of 16000rs paid on the said input.
How do we treat the following:
Clearance to XYZ ltd's own factory at Jaipur(purchase price:70000) :Free of Cost
a)IS cenvat credit required to be reversed?Why and how much?
b)Had the clearance been of 84000rs;would ur answer been different?
Quote answers with section/rule and their details as well as Court decisions as applicable.
How do we treat the following:
Clearance to XYZ ltd's own factory at Jaipur(purchase price:70000) :Free of Cost
a)IS cenvat credit required to be reversed?Why and how much?
b)Had the clearance been of 84000rs;would ur answer been different?
Quote answers with section/rule and their details as well as Court decisions as applicable.
13 February 2011
mater is not clear. what is your business activity. why you can say its your input.
13 February 2011
MAking plastic chairs.Plastic granules is an input for making plastic chairs.
13 February 2011
Free sample is lible to excise. now reverse duty.
13 February 2011
Sir,how come this be free sample?
The assessee is sending some of the raw materials(on which credit has already been availed) to his another factory?He hasn't given it to another assessee (free or for consideration)
The assessee is sending some of the raw materials(on which credit has already been availed) to his another factory?He hasn't given it to another assessee (free or for consideration)
14 February 2011
if you are transfering material to an other factory it meens goods moved and its nature of sale. and duty is lible on sale. so either reversed or pay duty to govt.
14 February 2011
So can the assessee again claim credit when he removes chairs from Jaipur factory?
14 February 2011
Whatever be the value, the amount of credit taken is to be reversed.
23 February 2011
I agree with Rajesh Kumar. However the original qustion is not clear and should be rehrased to clearly spell out the querry.
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