Case 1
Company A Ltd is manufacturing product “X” and on production, it updates RG1. Sometime due to demand from the customers the same product is being purchased from other manufacturers and received at their plant. When the finished good is purchased and received, which register it should update? RG 23 A Part I and II or RG 1. As per Excise Rules, RG 1 should be updated only for goods manufactured.
Case 2
Company B Ltd produces goods based on the customer orders and RG 1 is updated as and when the production happens. Sometimes based on the customer specifications RG is updated, being a continuous process plant or any other business reason the same product is called with a different name by another customer. Say Item “C” produced and RG 1 is updated for 100 units, and from that 80 units are sold to customer and balance 20 units are called as item “D” by another customers, same item cannot be sold to other customer as it is called item “C”, so A limited wanted to re classify the same. How should it do the same? Does it have to issue to shop floor all the 20 units of “C” and then update RG 1 again with item “D” or can they directly update the same in RG1?. Is updation of RG 1 allowed directly for such type of cases? According to Rule 1o of central excise rule 2002, Stock register is to be updated with only manufactured goods. Is this correct process?
Need your views on the above cases. Thanks in advance.
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