Cenvat credit compliance: verify original documents, restrict ineligible credits, and reverse credits when inputs or capital goods are removed.

Cenvat credit is admissible only on original, properly particularised documents where inputs, capital goods or input services are received and used for dutiable manufacture or taxable services; ineligible, duplicate or incomplete documents and services not used in manufacture (including outward freight) are not creditable. Registrants must reverse credit for inputs/capital goods sold or used in exempted goods, apply a ten percent adjustment on nil-rate clearances where credit-supported inputs serve both dutiable and exempted outputs, ensure capital goods/input sent for job work are returned within the prescribed period, and avoid claiming both Cenvat credit and income-tax depreciation or claiming full capital goods credit in a single year contrary to staged entitlement.

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