Sale of Cenvat not availed on Raw materials

[Guest]

Dear Sir,

We are a mfg co, registered under Central excise as a manufacturer, if we want to sell some raw materials on which we had not availed any cenvat credit, then what is the procedure and under which rule, please explain,Thanks and Regards.

[YAGAY andSUN]

Dear Sandesh,

Simply you have to issue an invoice for selling of RM and on the face of the invoice mention that you have not availed CENVAT credit on this raw material and also provide the cross reference of the invoice against which you had purchased raw material.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

In addition to above, you may either keep a separate invoice book for - Duty free issue material, wherein goods without availment of cenvat can be removed. A copy of the invoice under which such material received may be stapled with the office copy for ready reference.

A register may also be maintained for the same.

AI Summary

Sale of raw materials without CENVAT credit requires an invoice stating non availment and cross referencing the purchase invoice. Issue an invoice for the sale stating that CENVAT credit was not availed on the raw material and provide a cross reference to the purchase invoice; optionally use a separate duty free issue invoice book, staple the original purchase invoice to the office copy, and maintain a register of such transactions.