we are manufacture of Machinery. We had sold one machine to our customer in year 2011. Now customer intend to sale the same machine to us as assest sale after reversing excise duty which he had availed credit earlier with basic amount (after deducting depreciation).
In our case can we take the same machine as input and avail cenvat credit for the same or we have to show sales return and avail cenvat credit .
Please advice.
Manufacturer Seeks Guidance on CENVAT Credit for Machine Return: Input or Sales Return? A manufacturer of machinery sold a machine to a customer in 2011. The customer now wishes to sell the machine back to the manufacturer as an asset sale, having reversed the excise duty credit previously availed. The manufacturer seeks advice on whether they can take the machine as input and avail CENVAT credit or if they need to show it as a sales return. It is advised that if the machine is used in the factory, it can be received as input for CENVAT credit. If resold, it should be shown as a sales return. Further clarification is sought regarding dismantling parts and using them in other machinery. (AI Summary)
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