Reversal of cenvat credit

[Guest]

We are supplying goods to many organisations without payment of excise duty under exemption certificates and reversing the cenvat credit @10% of value of goods.Pls clarify that in case of supply to DMRC (Delhi Metro rail corpn)do we need to reverse the cenvat credit.

[Surender Gupta]

If you are supplied goods for the purpose of export or for the purpose mentioned in rule 6 of CC rules, you do not need to reverse the credit. However, for other cases, you need to reverse the credit be it DMRC

AI Summary

Reversal of cenvat credit required unless supplies are for export or purposes under rule 6 of the Cenvat Credit Rules. Whether cenvat credit must be reversed for supplies under exemption certificates is questioned. If supplies are for export or for purposes specified in rule 6 of the Cenvat Credit Rules, reversal is not required; otherwise the supplier must reverse cenvat credit, including for supplies to the public transport entity mentioned.