Availment of Cenvat credit previously written off

[chaganti srinivas]

Dear Sirs, We have debited Rs.7lacs approx. towards cenvat amount involved in the semi finished material written off from books as per the audit instructions. Can i take back the cenvat amount proprotionately as and when i started using the same for further process/manufacturing.

AI Summary

Reclaiming Cenvat Credit on Written-Off Materials Possible Under Rule 3(5B) When Used in Manufacturing or Services A participant inquired about reclaiming Cenvat credit previously written off for semi-finished materials as per audit instructions. They asked if they could proportionately reclaim the credit when using the materials for further processing or manufacturing. The response confirmed that, according to Rule 3(5B) of the Cenvat Credit Rules, 2004, the credit can be reclaimed if the materials are subsequently used in manufacturing final products or providing taxable services, subject to compliance with other rule provisions.