Capital goods rejection

[yateen vyas]

Sir,

One of our capital goods got rejected and we have taken 100 % credit for returning the goods.But at the last time goods were again checked and found ok.Now tell me what should i do now,

because we have made invoice for outgoing of capital goods to purchaseer.

AI Summary

Capital goods CENVAT credit reversal required after rejection; cancel invoice, intimate department and reverse half credit.
Where full CENVAT credit was taken on capital goods later rejected and subsequently found acceptable, the taxpayer should cancel the outward invoice, intimate the department via the official portal, disclose material facts and reverse the excess credit. Interest may be payable if the excess credit was utilized for duty payment on finished goods; application of the FIFO method determines whether utilization occurred, so reversal and documentation are required to address any departmental queries.