Trading of inputs

[CABALRAM PANDEY]

Dear All,

 

I request you all for your kind opinion on the following issue.

 

A Manufacturer of plastic chair purchased granuals(Master) as input for its manufacturing activity. Due to some reasons now he is not able to use those granuals (Master). Now the manufacturer wants to sell those granuals (Master). He has a RC for item Fbric, CETSH No. 39201012. Kindly put your kind attention on the matter with following questions?

1. Whether further registration required for new CETSH no. for granuals.

2. What should be done for removal of inputs as such, on which CENVAT Credit taken but not utilized.

3. IF any special procedure required for this.

 

Thanks & Regards

Balram Pandey

[email protected]

AI Summary

CENVAT credit reversal required when inputs are sold as such; pay duty if removal value exceeds earlier credit claimed.
Where CENVAT credit has been availed on inputs subsequently removed and sold as such, the manufacturer must reverse an amount equivalent to the credit claimed; if the transaction value on removal exceeds the earlier credit, duty must be paid on the higher transaction value so the reversal is not less than the credit earlier availed. The removal invoice should state the goods are removed as such and reference the earlier credit availed. A new CETSH registration is not required if the input was already declared and a trading registration is generally unnecessary for a one time disposal.