Raw matl damage in floods - cenvat -reg

[venkat eswaran]

Dear All,

In recent floods in Chennai, i our factory lot of Raw matls gets demaged. we calimed in insruance for about 5 laks.

what about the procedure to follow regarding Central Exsie cenvat on this?

Pl share ur views?

thanks in advance

Venkat

AI Summary

Handling Central Excise Cenvat Credit After Raw Materials Damage: Reverse Credit to Avoid Show Cause Notice A user inquired about the procedure for handling Central Excise Cenvat credit after raw materials were damaged in Chennai floods, with an insurance claim filed for 5 lakhs. A respondent advised reversing the Cenvat credit on the damaged materials, as failing to do so could lead to a show cause notice due to the insurance claim. Another contributor agreed, stating that when inputs are destroyed, the proportional credit of duty paid on those inputs should be reversed since the goods were not used in manufacturing excisable goods.