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

Reversal of cenvat credit recommended where destroyed inputs are insured to avoid show cause notices and departmental action.
Inputs damaged in floods that have attracted insurance recoveries require reversal of cenvat credit to the extent those inputs are not used in manufacture. Insurance proceeds commonly include duty, and a proportionate reversal of credit corresponding to destroyed inputs is required; failure to reverse may invite departmental scrutiny or a show cause notice.