27 October 2012
As per CENVAT credit rules, credit can be available to the extent of goods used in manufacturing of finished goods.
Following are the queries related to availment / eligible to take the excise credit,
1. Whether credit needs to be reversed on negative stock difference of raw material (i.e. Book stock 100 Kgs / Physical stock 80Kgs / Difference 20 Kgs)
2. Whether duty to be paid on negative difference in finished goods (i.e. Stock as per RG 1 100 Nos / Physical 80 Nos / Difference 20 Nos)
3. What is the treatment in case of positive variance in above mentioned 2 situations?
Request you to kindly provide the clarification with Rule / Notification reference.
28 October 2012
All manufacturers have been input output norms and aware that where is difference. scrap has been generate from the processing of goods. You can give the genuine reasons to the department and no need to reversed on negative stock.
12 November 2012
If you have no sufficient reason to explain,(Take care of your cost sheet and I/O Norms) be ready for payment of excise duty in case of -ve stock. As per excise, it will be assumed that you have sold the Raw Material/Finished Goods stock without invoice. in case of excess stock, you will also pay excise duty as when you consume the excess Raw material, Extra Finished goods will be manufactured. and in case of excess finished goods, when you sold the same, you will pay excise duty. It means you have to pay the excise duty in all the above said cases.
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