Cenvat credit utilised on the customer rejected goods...urge
This query is : Resolved
20 December 2012
Dear Experts,
Please clarify me on this issue.
Excise audit department has said to us that we have to pay back the cenvat credit utilised on the customer rejected goods as per Rule 18 of the Central Excise Rules 2002.
In other words
Rs. 10000 Cenvat Credit utilised for producing 100 units of Finished product on April 2012. Selling price per unit is 3000. Excise duty liability comes around Rs. 360 per unit (cess is also included).
All the goods were removed during the month of April 2012 itself. Out of 100 units 10 units were rejected by the Customers.
Now the excise audit department personnel says that we have to pay the excise duty of Rs.3600 (Rs.360 * 10 units rejected by the customres) which were utilised to product the customer rejected products as per Rule 18 of the Central Excise Rules.
Please clarify me whether i am required to pay this Rs.3600. Give supporting answers with relevant sections, rules or notification or case laws as the case may be.
Thanks & Regards,
Rajesh.
Please clarify me on this issue.
Excise audit department has said to us that we have to pay back the cenvat credit utilised on the customer rejected goods as per Rule 18 of the Central Excise Rules 2002.
In other words
Rs. 10000 Cenvat Credit utilised for producing 100 units of Finished product on April 2012. Selling price per unit is 3000. Excise duty liability comes around Rs. 360 per unit (cess is also included).
All the goods were removed during the month of April 2012 itself. Out of 100 units 10 units were rejected by the Customers.
Now the excise audit department personnel says that we have to pay the excise duty of Rs.3600 (Rs.360 * 10 units rejected by the customres) which were utilised to product the customer rejected products as per Rule 18 of the Central Excise Rules.
Please clarify me whether i am required to pay this Rs.3600. Give supporting answers with relevant sections, rules or notification or case laws as the case may be.
Thanks & Regards,
Rajesh.
Arun Kumar Singh
(Expert)
20 December 2012
May I know that what is the products?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Query on effect of registration of property
- GST on reimbursement of expenses
- Visiting card purchase
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Foriegn assets disclosure
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
