Remove as such
This query is : Resolved
02 August 2016
We are registered in excise as manufacturer we had purchase a non excisable goods in manufacturing division now we want to sales as it is that goods shall we paid duty on that or not any notification please provide
04 August 2016
If you have purchase the non excisable goods and sale as it is then no need to pay excise duty.
05 August 2016
we remove that material through Rule 11 Invoice or other invoice and any other register maintain for that
21 July 2025
Great question — you're dealing with the removal of non-excisable goods "as such" by an excise-registered manufacturer, and you're unsure about:
Whether excise duty is payable,
Whether to use a Rule 11 invoice,
And what records/registers to maintain.
Let’s clarify:
✅ Situation:
You are a manufacturer registered under Central Excise.
You purchased non-excisable goods (e.g., exempt goods, or goods not listed in the Central Excise Tariff).
Now you want to sell/transfer those goods as-is, without using them in manufacturing.
🧾 Excise Duty Applicability
✅ No excise duty is payable on removal of non-excisable goods, because excise applies only to excisable goods under Section 3 of the Central Excise Act, 1944.
Since the goods are non-excisable, they are outside the scope of excise altogether — even if you are an excise-registered manufacturer.
🔹 Reference: Rule 3(5) of the CENVAT Credit Rules only applies to inputs on which CENVAT credit has been taken, and which are excisable.
🧾 Should You Use a Rule 11 Invoice?
❌ No, do not use a Rule 11 excise invoice.
Rule 11 invoices are only for the removal of excisable goods under Central Excise Rules, 2002.
Instead, you should use a commercial (tax) invoice — similar to how a trader would invoice — with:
Standard buyer/seller details,
Description of goods,
Sale price,
VAT/CST (as applicable pre-GST),
No excise duty column.
📒 Record-Keeping Requirements
Since the goods are not subject to excise, you:
Don’t need to maintain RG-1 or RG-23 records for them.
Can maintain a separate inward/outward register (even in Excel) for non-excisable goods to ensure clear audit trail.
If your ERP system mixes excisable and non-excisable items, consider using separate item codes or tags.
Whether excise duty is payable,
Whether to use a Rule 11 invoice,
And what records/registers to maintain.
Let’s clarify:
✅ Situation:
You are a manufacturer registered under Central Excise.
You purchased non-excisable goods (e.g., exempt goods, or goods not listed in the Central Excise Tariff).
Now you want to sell/transfer those goods as-is, without using them in manufacturing.
🧾 Excise Duty Applicability
✅ No excise duty is payable on removal of non-excisable goods, because excise applies only to excisable goods under Section 3 of the Central Excise Act, 1944.
Since the goods are non-excisable, they are outside the scope of excise altogether — even if you are an excise-registered manufacturer.
🔹 Reference: Rule 3(5) of the CENVAT Credit Rules only applies to inputs on which CENVAT credit has been taken, and which are excisable.
🧾 Should You Use a Rule 11 Invoice?
❌ No, do not use a Rule 11 excise invoice.
Rule 11 invoices are only for the removal of excisable goods under Central Excise Rules, 2002.
Instead, you should use a commercial (tax) invoice — similar to how a trader would invoice — with:
Standard buyer/seller details,
Description of goods,
Sale price,
VAT/CST (as applicable pre-GST),
No excise duty column.
📒 Record-Keeping Requirements
Since the goods are not subject to excise, you:
Don’t need to maintain RG-1 or RG-23 records for them.
Can maintain a separate inward/outward register (even in Excel) for non-excisable goods to ensure clear audit trail.
If your ERP system mixes excisable and non-excisable items, consider using separate item codes or tags.
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
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- 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
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
