It means Capital goods returned or sold without use (as it is)


When we purchase the capital goods, we take 50% cenvat.

In case we remove it as such, we take balance 50% cenvat also and then pay (reverse) the whole 100% cenvat


Hence it is said that in this case of capital goods, whole 100% cenvat is available in first year of purchase



This removal should be on cover of an invoice.

The buyer will be able to take credit of such amount



Service Provider can remove capital goods outside the factory for providing free warranty and need not pay cenvat

Go Ad-free
CA Maninder Singh's photo - Co-founder, Teachoo

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.