Reversal of CENVAT Credit on inputs return as such

[Pradeep Jain]

Dear Sir,

Rate of Excise Duty has been changed w.e.f. 01.03.15 . ED now is 12.5% in place of 12% and Edu. Cess and SHE Cess has no more. Now in case of return of goods as such to supplier Excise duty is payable equal to CENVAT Credit taken , now in this case at what rate the amount of CENVAT credit would be reversed.

Regards

Pradeep Jain

[MUKUND THAKKAR]

Dear pradeep,

When you cleared INPUT AS SUCH. you should reversed an amount equal to the Cenvat credit taken.

you are not paying any duty. just reversed amount . please add 2% and 1% as and when cleared as such.

[Mahir S]

Sir,

Till any clarification is provided, you can reverse whatever u feel is appropriate.

I agree with above views, as duty is not paid, BUT only CENVAT credit availed is being reversed.

AI Summary

Reversal of CENVAT credit: reverse the CENVAT credit originally availed when inputs are returned as such.
Reversal of CENVAT credit is required when inputs cleared as such are returned; the operator must reverse an amount equal to the CENVAT credit originally availed rather than pay duty, and reflect any ancillary credit components that formed part of the original CENVAT claim in the reversed amount.