Accountal of inputs in accordance with Standard Inputs-Output Norms (SION) - Central Excise Practice Manual (OLD) - Central Excise

Accountal of inputs in accordance with Standard Inputs-Output Norms (SION) Prior to, the Annual Supplement, 2008 to FTP came into force on 11-4-2008; in terms of para 6.8(e) of FTP only scrap/waste/remnants arising out of production process or in connection therewith was required to be sold in the DTA as per the Standard Input-Output Norms (SION) notified under the Duty Exemption Scheme. The para 6.6(e) of HOP provides for accounting of inputs as per SION. The notifications governing duty free import and procurement by EOUs have been amended suitably so as to provide that inputs imported or procured duty free are required to be accounted for in accordance with SION. In respect of items for which no SION has been notified, consumption of inputs would be allowed subject to generation of waste, scrap and remnants upto 2% of input quantity. However, if any item in addition to those given in SION are required as input or where generation of waste, scrap and remnants is beyond 2% of the input quantity, consumption would be allowed on the basis of self-declared norms for a period of three months till the jurisdictional Development Commissioner fixes ad hoc norms subject to an undertaking by the unit that the self-declared/ad hoc norms would be adjusted in accordance with norms as finally fixed by the Norms Committee in DGFT for the unit. Further, a provision has also been made to consider such cases by the Board of Approval for appropriate decision in case of difficulty in fixation of SION by the Norms Committee. The norms fixed by the Norms Committee shall be applicable to the specific unit. [ Ref. CBEC Circular No. 12/2008-Customs ]