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TMI BlogRemission of DutyX X X X Extracts X X X X X X X X Extracts X X X X ..... Remission of Duty X X X X Extracts X X X X X X X X Extracts X X X X ..... or production of said goods and the CENVAT credit taken on input services used in or in relation to the manufacture or production of said goods shall be reversed." But the above is for finished goods, if scrap is destroyed due to fire then how to reverse the duty? Reply By KASTURI SETHI: The Reply: Scrap is also final product as per Central Excise Tariff Act. Reply By surya narayana: The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply: Dear Friend, Rule 21 of CER,2002 deals with the provisions related to Remission of Duty. As such, this Rule not prescribed any time limit for making application for Remission of duty. The above Rule facilitates for remission of duty on the manufactured goods/Finished Goods which are not fit for use/marketing etc., In terms of Cenvat Credit Rules,2004, on any goods if duty is remitted, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the assessee has to reverse the proportionate cenvat credit involved on the inputs used in such remitted goods at the time of destruction. Further, the view expressed by shri. Kasturi Sethi Ji that scrap is also Final Product, I feel if any scrap that is generated during the course of manufacturer then it is subject to duty as if it is a final product. If it is otherwise, then scrap is not du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiable as it cannot be treated as final product.
Hope the issue is clarified.
Best Regards
Suryanarayana
Reply By KASTURI SETHI:
The Reply:
Sh.Surya Narayana,
Sir, Thanks for detailed and clear reply. I agree with you in toto. X X X X Extracts X X X X X X X X Extracts X X X X
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