Rejected return goods and scraped

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2012 Sirs,

I am working with Limited co. i have a query about Rejected Goods.Few days ago we have recd return goods from our customer.after that we get back cenvat credit on the same.after some days our management decided to scrap or dismantle the rejected goods.as per law scrap is also excisable. but i need to save excise duty. Is there any way to save excise duty.

Thanks in advance

U S Sharma

U S Sharma (Expert)

16 August 2012 :)

as the goods were cleared on payment of duty, and on return you have taken duty credit in RG-23A-part 2,
now if you show the goods rejected, you have to reverse the duty which you have taken credit on return of goods,
as its not the normal scrap generated under processing of exisable goods.

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2012 Sir our product is not reprocessable so there is huge lose to the company if i reverse credit is there any way to save Excise duty?

U S Sharma

U S Sharma (Expert)

17 August 2012 issue the same to re-manufacture, and generate scrap alongwith your normal scraps generated (which can be sold at a 20% or lower value of such goods), and clear the scrap so generated through RG-1 and pay duty on clearance value.

little paper work may save a lot. direct disposal as scrap will not save the duty.

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2012 Thanks Sir

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