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

AI Summary

Guidance Sought on Reversing CENVAT Credit for Returned Goods Amid Excise Duty Rate Change from 12% to 12.5% A discussion in a forum addresses the reversal of CENVAT Credit when returning goods to the supplier after a change in the excise duty rate from 12% to 12.5%, with the removal of Education Cess and SHE Cess. The inquiry seeks guidance on the rate at which CENVAT Credit should be reversed. One respondent advises reversing an amount equal to the CENVAT Credit taken, emphasizing that no duty is paid, only the credit is reversed. Another suggests reversing an amount deemed appropriate until further clarification is provided, agreeing that only the availed credit is reversed.