Duty liability and rule 21
This query is : Open
02 September 2012
If goods are destroyed in factory/outside the factory then Excise duty will be payable or not? If goods are not in condition to sell and sold as a scrap then excise duty will be payable or not?
thanks.....
thanks.....
02 September 2012
The application for remission of duty should be made to jurisdictional Commissioner of Central Excise
Message likes :
1 times
04 September 2012
The remission of duty is applicable for those goods which have ost or destroyed by natural causes or by unavoidable accident or are claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal. Hence if the goods have lost outside factory there is no issue of remission, in such case you have to pay central excise duty. Further if the goods have lost other than natural cause or avoidable accidents such as theft then also you have to pay. as regards scrap, once you have paid the duty there is no need to pay while clearing scrap of destroyed goods.
Message likes :
1 times
08 September 2012
I agree with Mr. Laxman ishwarrao. Except to the extent as under :-
1. In this case the goods are rendered (I presume) unfit for use or damaged during the course of manufacture. The rejections etc are normal incidents during the process of manufacture. Since goods are being cleared as scrap central excise duty is payable. Remission is not applicable - refer 2007 (209) E.L.T. 477 (Tri. - Del.)
For further clarification please mail the query at sureshjain.nj@gmail.com and pay if you please Rs. 100 to 500 donation to the "KADAM" institute engaged in education to children of construction labours.
https://www.facebook.com/groups/kadamfoundation/
https://www.kadamfoundation.org/
1. In this case the goods are rendered (I presume) unfit for use or damaged during the course of manufacture. The rejections etc are normal incidents during the process of manufacture. Since goods are being cleared as scrap central excise duty is payable. Remission is not applicable - refer 2007 (209) E.L.T. 477 (Tri. - Del.)
For further clarification please mail the query at sureshjain.nj@gmail.com and pay if you please Rs. 100 to 500 donation to the "KADAM" institute engaged in education to children of construction labours.
https://www.facebook.com/groups/kadamfoundation/
https://www.kadamfoundation.org/
Message likes :
1 times
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
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- GST ON DAMAGED GOODS
- Specified Profession
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
