Dear Sir, Is it possible to clear the unused raw material (item became obsolete due to final product specification change) as 'SCRAP' and send the same back to the supplier of this material? Value declared for this scrap would be equal to the Purchase price and duty charged would be equal to the CENVAT credit taken. Also kindly let us know if any duty rate change between the CENVAT period and Clearance period, which rate should be taken for such clearances Regards, ArunRaj

By virtue of rule 3(5) of CCR when inputs on which credit taken is removed as such the mfr shall pay an amount equal to credit availed inrespect of such inputs. So if the raw materials are removed as such by showing in the invoice, only credit taken to be reversed. But when the word scrap only is mentioned in the invoice it is advisable to clear at existing rate of duty. Hence rate of duty depends on the description in the invoice.( inputs as such or scrap).Once credit taken is reversed always you are at safe side.