@Sndeveloper Adm I was able to delete records using an update set, but I don't think this is an advised method. Also this was not possible for all the tables, I tried this for incident table it didn't work, but for CMDB CI table it works fine. Please see the steps I followed below.
1. Created a new update set "Delete_Record" and made that as my current update set.
2. Navigated to CMDB CI table, selected a configuration item on the list view and from the actions selected "Create Application File"
3. On selecting create application file, below dialog was shown, on which I selected OK
4. On Selecting OK a new Metadata Snapshot Entry was created in my update set. (When exporting and importing this update set the instance updated the CI record)
5. Now I opened the customer update record for Metadata Snapshot and modified the below action that is highlighted in Yellow.
From: action="INSERT_OR_UPDATE"
To: action="DELETE"
6. Updated the customer update record and closed the update set, exported to XML.
7. Imported, previewed & committed in a different instance which deleted the record that was intended to be removed.
Please mark the appropriate response as correct answer and helpful
