As per Rule 3(5C) of the CCR, 2004 as amended, it is required to reverse the CENVAT credit availed on inputs as well as on input services which are used in the manufacture or production of goods where the duty is ordered to be remitted under Rule 21 of the Central Excise Rules,2002.
We have calculated duty to be reversed on inputs, based on quantity consumed in the manufacture of finished goods but we find it difficult to calculate duty reversal in respect of credit taken on Input services. If the fire incidence occurs on 16th March, 2015, kindly guide us method to be followed to calculate reversal of credit on input services.
Regards,
VINAY
Guidance on Duty Reversal for Input Services Post-Fire Incident: Consult Experts for Certification Under Central Excise Rules. In a discussion forum regarding the remission of duty and reversal of credit on inputs and input services under Central Excise rules, a query was raised about calculating duty reversal on input services after a fire incident. Respondents advised consulting a Cost Accountant or Chartered Accountant to certify the amount of input service credit to be reversed, as the department accepts such certification. They highlighted the importance of identifying specific input services related to remitted goods and suggested considering common input services proportionately. References to relevant Circulars were also mentioned to support the guidance provided. (AI Summary)
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