During storage some bottles gets broken/damaged and during automatic bottling some quantity of bottles get damaged. Am I required to reverse credit in respect of all broken/damaged bottles?
Reversal of credit is necessary only in respect of bottles, which gets damaged in storage. There is no need to reverse the credit taken on bottles, which get damaged during bottling. 45. In the present CENVAT Rules, credit on Capital goods is restricted to 50% during the financial year in which it is received. Some Capital goods become scrap within a short period of use i.e. within the financial year it was received. This being the case, whether credit can be availed in the next financial year without such goods being in use possession or use? Yes.
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