waht id the treatment of cenvat credit when stock is write off from the Book

[Asked by Guest]

Dear Sir,

We are a manufacturer and we written of some Rm, SFG & FG due to non moving stock from long times physically we have transfer these stocks to scrap and when we will sale these scrap we paid the duty on transaction value.

So can any one clarify me what is the Cenvat Credit treatment on that write off RM, SFG & FG.

Some FG which we declared in RG-1 as a stock on that case also how we remove these stock from RG-1 and how we mentioned these stocks in our ER-1 Return also.

Regards

Swapneswar

AI Summary

Cenvat credit reversal required on written-off stock; scrap disposal and duty payment affect reversal obligations.
Cenvat credit on written-off stock must be reversed: full reversal for raw materials and proportionate reversal for finished or semi-finished goods, with reversal calculable by accountant certificate. One view stated that transfer to scrap followed by payment of duty on removal need not trigger reversal because scrap is a final product, while other views maintain write-off requires reversal unless the item is later used, permitting reclamation. For finished goods, options are destruction on payment of duty or seeking remission under the rules and reversing proportionate input credit after permission.