AS SUCH CLEARANCE - CLARIFICATION REQUESTED - REG.

[R MURALI R MURALI]

Dear sir,

I have some doubt regarding ours unit Manf. of Boiler components and we are despatching our products to Mega power project on behalf of BHEL, TIRUCHY. At the time of we are purchasing huge quantity our Raw materials (BEAM, ANGLE, CHANNEL,ROD, ROUDS, PLATE) and still lying some portion idle after completing our BHEL order. Hence we are planning to sale our Raw materials AS SUCH. Dept., refusing to sale , due to rare case you may sale your RM , but it is not continue to sale AS SUCH.

As per rule simply they indicate manufacturer also sale RM as such. But it was not indicated continue to sale or not?

Please give your suggestion.

With Regards.

R.MURALI

ranemurali@gmail.com

AI Summary

Removal of inputs as such permitted but requires CENVAT credit reversal when not retained for manufacture.
Surplus raw materials may be sold "as such"; the department cannot bar such disposals. If sold to another manufacturer for use in manufacture, treat as removal as such and reverse any CENVAT credit availed, addressing any duty liability. If sold to traders or non-manufacturers, treat as trading and reverse the credit, as trading sales do not allow retention of CENVAT. CCR provisions mandate credit reversal and specify procedural/documentary compliance. Exports of such inputs generally do not require reversal and may allow rebate where duty was paid. The department may scrutinise transactions for compliance but cannot impose a blanket prohibition.