We have purchased Machinery in the month of April,2015 for approx 65 Lakhs and installed and started production within a month. We have taken the credit of the Central Excise charged in the Capital Goods Invoice. We have made the payment to the supplier keeping a balance of Rs, 6.50 lakhs. After a month say in the month of June,2015 we found out that one of the Machinery received was not upto the quality agreed and we had made a complaint about the same to the supplier. Many follow up were made to the supplier and after many round of discussions he offered us the discount of approx Rs. 4.00 lakhs. On that out of the remaining 6.50 we made the payment of 2.50 and Rs. 4.00 lakhs was written off from his account as Discount. Now During the CERA Audit this point was raised. Now we are being asked to pay the amount of Excise Duty on the amount written off alongwith the interest and penalty. Can somebody guide us what can be done in this issue. BY writing off the same as discount we have made the Income Tax Payment on the amount.
WE HAD TAKEN ADVANCE LICENCE FOR DEEMED EXPORT AND NOW SUBMITTING DOCUMENTS TO CLEAR IT
BUT NOW WE DONOT HAVE GREEN CARD OF OUR CUSTOMER TO WHOM WE MAKE DISPATCHES AGAINST ADVANCE LICENCE
PLEASE SUGGEST WHAT WE DO NOW TO CLEAR IT
IT URGENT PLEASE SUGGEST
1. Is Excise Duty is Levied On Manufacturing
2. What is the Excise Duty Limit to register under excise, Today if this is Levied.
3. On Which Of the products does excise levies, On Every products or Only On Selected Products.
4. What is the rate of Excise Duty, is this same rate or different rates on different products.
What safeguard are available in case a person is not able to claim refund under rule 5 of cenvat credit rules 2004 within the prescribed time ??
An exporter "A" executed a CT 1 for some quantity, say 100 MT., and passed it onto a manufacturer "B" for its procurement. The manufacturer "B" could supply only 90 Mt. Now, should the manufacturer obtain a non utilization certificate from the central excise department for this short supply