Cenvat on rejected material

[Guest]

if i have received any rejected material with duty payment documents. and that materials not use for processing or any thing than can i take the cenvat of that rejected material.

[Madhukar N Hiregange]

Under Rule 16 the credit of rejected materials is available in full based on own duty paying documents. When the same are removed again the credit availed is expected to be discharged as no manufacture has taken place.

AI Summary

Cenvat credit on rejected materials allowed, but credit must be discharged if materials are removed without manufacture. Cenvat credit is available on rejected materials supported by the claimant's duty payment documents and may be availed in full; if such materials are later removed without being used in manufacture or processing, the availed credit must be discharged because no manufacture has taken place.