TaxTMI 
TaxTMI 
field debit
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....ield debit<br> Query (Issue) Started By: - Ramakrishnan Seshadri Dated:- 31-5-2016 Last Reply Date:- 24-6-2016 Central Excise<br>Got 1 Reply<br>Central Excise<br>Dear Sir, We are manufacturer of automobile parts.We import components from our supplier. for manufacturing the parts.Sometimes the components may get fault and our customer will debit us for the same. In turn we have decided to raise in....
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....voice as field claim warranty for this defect to our overseas supplier. Now our question whether we have reverse the cenvat credit for the value of the invoice raised or what is the procedure. Kindly guide us in this issue. Thanks & Regards, S.Ramakrishnan Reply By KASTURI SETHI: The Reply: Dear Sir, In this situation, duty-paid inputs/components have not been used in the manufacture of dut....
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....iable final product. It is a fact.Component becomes scrap/unusable, it being un-repairable. It is also a fact that duty already stands deposited into Govt. account which would not be refunded to the payer in any form whether drawback or refund (It is supposed.). Thus first condition of usage of the component in the manufacture of final product has not been fulfilled.Second condition stands fulfill....
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....ed as no chance of refund of duty. If you are able to re-export the defective component, then you can claim drawback. In that situation, you will have to reverse the credit taken. However, even if you do not re-export the goods but gets the amount (including the element of Customs duty/CVD etc) back from the overseas supplier, you are required to reverse the cenvat credit on the ground that none h....
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....as right to keep the amount of Govt. duty in one's pocket.<br> Discussion Forum - Knowledge Sharing ....