M/s. Geekay Wires Limited,

The applicant seeks clarification with regard to eligibility of input tax credit on the raw materials purchased for manufacture of finished goods i.e. whether already claimed ITC is required to reversed or not in the following circumstances.

i) When the raw materials purchased are already used in the manufacture of finished goods and the finished goods are destroyed in the fire accident completely

ii) When the raw materials procured are lost in the fire accident before use in manufacture of finished goods.

iii) When the destroyed finished goods can be sold as steel scrap in the open market and output tax liability on such supply of scrap is paid.