request your views

[Kasi viswanathan V]

Greetings,

 

As per rule 3(5) of CCR 2004

 

" When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9 :"

 

An example:-

 

I have bought 100 units of raw material for manufacture. In respect of said purchase i have incurred various expenses on which service tax has been charged - say for example -transportation, commission to agent for identifying the seller with required quality of product etc... i have taken credit of input and input services.

 

Now, i am selling 25 units of raw material "as such".

 

Whether it is ok to reverse only 25% of cenvat credit on input or is it required to reverse proportionate credit of input services?

 

(Whether "in respect of such inputs" is wide enough to cover credit availed on services relating to the said inputs?)

 

 

Regards,

Kasi Viswanathan V