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TMI BlogHow we will debit the Excise duty if we write off.X X X X Extracts X X X X X X X X Extracts X X X X ..... How we will debit the Excise duty if we write off. X X X X Extracts X X X X X X X X Extracts X X X X ..... in future. management decide for doing scrap these items. further some items are which are we can use these materials in our internal for making some other material. Query 1) Some items are going to scrap in this case how we will remove the stock's from RG-1 and paid the Excise duty. 2) If some items are already declared in RG-1 and showing closing stock these items are not sale in future b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut we can use the same items for making some another F.G items so in this case how can we accounting these stocks in RG-1 and how we will discharge the Excise duty liability also. Regards Swapneswar Reply By YAGAY AND SUN: The Reply: Please check CBE&C Circular No 907/27/2009-CX/07-09-2009 and CBE&C Circular No. 990/14/2014-CX-8/19-11-2014 read with remission of duty Rule 21 of the Rules , 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (if goods are unfit by consumption for marketing) in this regard. Reply By KASTURI SETHI: The Reply: Sh.Swapneswar muduli Ji, I endorse the reply of M/S. YAGAY AND SUN, Sirs. I intend to add something. Scrap is also a final product. If it is further used captively in the manufacture of dutiable final product, there is no problem. In case, scrap is used captively in the manufacture of exempte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d final product, you will have to pay duty on the scrap so used. Reply By surya narayana: The Reply: Dear Swapneswar Ji, As already stated, in the given situation, an assessee having the below options: 1. To apply for remission under Rule 21 of CCR,2002 and have to reverse the proportionate credit taken on the inputs contained in the remitted products at the time of destruction after getting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the permission. 2. Some assessees, prefer paying duty instead of waiting for the remission permission which generally takes longer periods and cannot wait till the permission received due various technical reasons like space constraint or other regulations relevant for the specific industry. However, while opting for the 2nd one, one has to evaluate the difference between the duty amount and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proportionate credit and if the difference is marginal, it is advisable to pay duty and clear the material for destruction instead of waiting for a longer period for getting the remission permission under Rule 21
Best regards
Suryanarayana X X X X Extracts X X X X X X X X Extracts X X X X
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