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

Reversing CENVAT Credit Required for Supplies to DMRC Unless Covered by Rule 6 of CENVAT Credit Rules. A query was raised about the necessity of reversing CENVAT credit when supplying goods to organizations without excise duty under exemption certificates, specifically regarding supplies to the Delhi Metro Rail Corporation (DMRC). The response clarified that if the goods are supplied for export purposes or purposes outlined in Rule 6 of the CENVAT Credit Rules, reversing the credit is not required. For other cases, including supplies to DMRC, the credit must be reversed.