Cenvat Credit

[Asked by Guest]

Hi,

In how days the material sent for demonstration has to come back to manufacturing place to avail cenvat credit.

If a sold machinery is received back for repairs, what is the procedure?

Can some material be sent for demonstration without invoice on returnable basis - what document is required and what will the time period with in which it has to be received back?

 

AI Summary

Cenvat credit: conditions for demonstration goods, repairs and returnable supplies, invoicing and credit reversal principles.
Cenvat credit on demonstration dispatches requires compliance with excise invoicing for excisable goods and a returnable gate pass and purpose note for non excisable items; credit can be availed once demonstrational goods return and are used in manufacture provided records of removal and receipt are maintained. Repairs of returned sold machinery should follow job work procedures with records of incoming and outgoing movements, and non warranty parts used in repair may necessitate reversal of credit. Sale on approval arrangements require observance of prescribed return time limits and corresponding recordkeeping to determine credit entitlement or reversal.