Scrap materials in Factory, Central Excise

[Vinayak Burhade]

We are purchasing material in factory after duty paid. Same materials is rejected before production. Reason could be rusty, handling damage etc. Can we pay the excise duty on this scrap?

Vise versa if used in production and while making product materials rejected then can we pay the excise duty and how much.

In which excise rule it is mentioned.

Thanks,

Vinayak.

Posts / Replies

[YAGAY AND SUN]

Dear Vinayak,

You would have to reverse the CENVAT credit equivalent to the CENVAT credit availed on such materials.

Regards

YAGAY & SUN

(Management, Business & Indirect Tax Consultants)

[Ajay Raghatate]

Dear Sir,

What will be the Duty liability , if we removed input as scrap ,

On transaction value or proportionate cenvat credit availed

Thanks