docs required to snd back the material

[raj nadh]

Dear Experts,

We are hiring a DG set from another state. Now we are send back this DG set to the same party as the rental contract is completed. Pls advice the necessary documents required.

[Rajagopalan Ranganathan]

Sir,

You cannot avail the credit of CENVAT duty paid on the DG set since you have taken it on payment of rent. Under rule 4 (3) of CENVAT Credit Rules, 2004 if the capital goods are acquired by a manufacturer/output service provider on lease, hire purchase or loan agreement, from a financing company, then you can take credit. Since you are not eligible to take credit you can remove the DG set under you own document like delivery challan etc.

AI Summary

CENVAT credit denial on rented capital goods, with removal documented via delivery challan as the operative consequence. CENVAT credit is not available for a DG set taken on commercial rent; Rule 4(3) permits credit only where capital goods are acquired on lease, hire purchase or loan agreement from a financing company. Since the DG set was hired under a rental contract, the hirer is ineligible to claim CENVAT credit and should remove or return the DG set using its own movement documents such as a delivery challan.