Finished goods sent for reprocessing.

This query is : Resolved

anckoora (Querist)
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14 December 2011 Dear Experts,

We are a 100% EOU of Gold Studded Jewellery.
We took part in a exhibition in Dubai by taking there 1 kg of gold ornaments. During exhibition, we sold 200gms of ornaments and balance 800gms of ornaments reimported back to india. Now this 800gms of ornaments (finished goods as per excise) , we sent back in our production department to reprocess and we will manufacture ornaments of other designs.
Now in ER-2, Op. stock is nil. Oty Mfrd., we will show 1000gms (full qty shown as inward).Now, where to show in ER-2 , out of 3 columns of removal in ER-2(1) 200gms which was sold in exhibition and (2) 800gms sent back in production for new design manufacturing purpose.

PL. SIR, GUIDE ME.

THANKS IN ADVANCE
ANCKOORA

U S Sharma

U S Sharma (Expert)
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15 December 2011 as import was done on balance 800 grams only, inward entry would be 800 grams only.
200 grams are traded goods and would not come under ER2

anckoora

anckoora (Querist)
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15 December 2011 BUT SIR, WHEN WE TOOK 1KG ORNAMENTS TO DUBAI FOR EXHIBITION, WE HAD SHOWN IN EXCISE BOOKS AS OUTWARD FOR EXHIBITION.

NOW, WE HAVE TO TAKE THIS FULL 1 KG AS INWARD AND FROM THAT WE HAVE SHOW SALE (DURING EXHIBITION) OF 200GMS. nOW WHERE TO SHOW THIS SALE & THE BALANCE QTY OF 800 GMS WHICH WAS REPROCESSED IN ER 2 ?
THANKS
ANCKOORA

U S Sharma

U S Sharma (Expert)
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16 December 2011 ER-2 does not deal with 1) goods sent for exibition 2) goods sent for reprocessing, but it represents actual quantity manufactured and cleared only

if you have cleared 1000 grams then 800 grams inward entry would not come in ER2 now,

if you have cleared 1000 grans under bond, with undertaking to return back the goods, then ER2 of that period was not reflected, and now 200 grams export only will reflect.

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