Dear All,
Greetings of the day.. Kindly confirm that cenvat credit of samples and replacement is claimable or not. (i.e some times machinery supplier send replacement parts with excise invoice. They shows basic amount as discount and excise invoice as per cenvat rule)
Kindly guide me.
Regards
M.RamKumar
Eligibility for CENVAT Credit on Replacement Parts: Conditions for Availing and Reversing Input Tax Credit Explained. A user inquired about the eligibility to claim CENVAT credit on sample and replacement invoices, particularly when machinery suppliers send replacement parts with excise invoices. Three responses were provided. The first response indicated that CENVAT credit can be availed if the defective part is cleared with excise duty payment. The second response mentioned that CENVAT and Input Tax Credit must be reversed for replaced parts unless used in manufacturing finished goods. The third response stated that if the machine is under warranty, CENVAT credit is possible if the damaged part is returned with an excise invoice and duty reversal. (AI Summary)
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