If the capital goods are cleared as Waste and Scrap, the manufacturer shall pay an amount equal to

the duty leviable on transaction value.

The buyer will be able to take credit of such amount

 

(clause (b) of sub-rule (5A) as read with rule 3(6))

  1. Indirect Tax
  2. Cenvat Credit

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.