Clarification on issues related to reversal of cenvat credit on WIP/ finished goods written off in the books of accounts -reg.

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....s) New Delhi,  dated the 7th December, 2009. To,       All Chief Commissioners of Central Excise (including LTU),       All Commissioners of Central Excise (including LTU),       All Director Generals. Sir/ Madam, Subject: Clarification on issues related to reversal of cenvat credit on WIP/ fini....

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....s required to reverse the credit taken on the said input. As far as finished goods in concerned, it is stated that excise duty is chargeable on the activity of manufacture or production. Even though liability for payment of tax has been postponed to the time of removal of goods for the factory, but still the legal liability to pay the excise duty has been fastened on the goods, when it has been ma....

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....d writing off work in progress (WIP), it is stated that if the WIP has reached the stage, when it can be considered as manufactured goods, in that case, the same treatment as applicable to finished goods, discussed in para2 above would apply. However, if the activity carried out on the WIP goods cannot be considered as amounting to manufacture, in that case, the said goods should be considered as ....