Cenvat Treatment of sale return when goods declared as Scrap

[Asked by Guest]

Hi,

We have a sale return & after reciving the goods back in our factory premises we have declared those goods as scrap.

1 Can i awail cenvat credit on return goods?

2 After declaring the goods as scrap is there any cenvat liablities stand to pay the amount?

AI Summary

CENVAT credit on returned goods remains claimable, but equivalent credit must be paid when the goods are declared scrap.
CENVAT credit may be taken on returned goods, but if those returned goods are processed and cleared as scrap an amount equal to the CENVAT credit availed must be paid; scrap clearance does not amount to fresh manufacture and does not negate the obligation to reverse or pay an amount equivalent to the credit. A buyer who pays duty under the Cenvat Rules may avail CENVAT credit of that duty in line with the rules' explanation.