regarding cenvat credit avail on warrnty free goods

[Guest]

cenvat credit is available on accessories cleared along with final product and goods used for providing free warranty for final product. 

My question is what if these warranty goods will not be used by manufacture for long time how he will treat this type of goods ? what will be the tax treatment of such kind of goods ?

[Madhukar N Hiregange]

Yes available. As long as they are not scrapped or written off the credit is safe.

[Mahir S]

If credit availed on such goods and not required, then the same may be cleared As Such, on payment of credit availed thereon.

New accessories can again be purchased as and when they are required in the future.

Else, you may follow the above clarification  dated 10.04.2014 in the matter.

AI Summary

CENVAT Credit Validity for Free Warranty Goods: Unused Goods Retain Credit Unless Scrapped or Written Off A discussion on a forum addressed the issue of CENVAT credit availability for goods used in providing free warranties with final products. The query focused on the tax treatment of warranty goods that remain unused by the manufacturer for an extended period. One response stated that CENVAT credit remains valid as long as the goods are not scrapped or written off. Another response suggested that if the credit is not needed, the goods can be cleared as such, with the credit availed being paid, and new accessories can be purchased when necessary.