Dear Sir,
We have supplied goods in Mega Power Project at Sagardighi, west Bengal. Also we have not created separate books of account. We will take CENVAT credit against material procured for this project. Now Excise department is asking to take 5% reverse on total basic sale value.
As this is mega power project, are we liable tp pay 5% reverse ? Please guide us.
5% reverse charge applies to Mega Power Project supplies without separate books under CENVAT Credit Rules. A query was raised about whether a 5% reverse charge on the total basic sale value is applicable for supplies made to a Mega Power Project in Sagardighi, West Bengal, without maintaining separate books of account. The Excise Department demands this reverse charge. Responses from three contributors, including Mariappan Govindarajan, agree that under CENVAT Credit Rules, separate books must be maintained for exempted and dutiable goods. Without separate books, the 5% charge is applicable. Ganeshan Kalyani and Kasturi Sethi support Govindarajan's interpretation of the rules. (AI Summary)
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