Clearance of input as such invoice treatment...

Dear Ankit,

Same Rule 11 Invoice is needed for As such sale, in that invoice you have to mention that "AS SUCH REMOVALS" or "Cleared under Rule 3(5) Cenvat Credit Rules 2004".

before you making Invoice, verify duties of Original INPUT Procured Invoice, the same duties were discharged while same INPUTS removing as such sale.

Thank Mr. sathya, But can you please tell how would be such invoice be treated at customers side,

can it be treated as First dealer's invoice...

Remove as such as per Mr Satya guidliance

if unit is manufacturing and he will be I stage only-

Units will by vertue manufacturing  and dealers

Dear Mr. Ankit,

When you had purchased the raw material for manufacturing the goods from the vendor you were on the second stage biller. And once you have manufactured the goods any waste, scrap or runner going out of the unit will be treated as first stage billing since the tax source generation will be starting from you. The major reason being, the item (raw material) purchased by you has ended by the taxes you have paid to the supplier you purchased from therefore the billing stage has ended. Now the new generation will start from you as it is a waste of the manufacturing unit.

As far the naration is concerned, it depends from item to item and commodity to commodity. Yes this is true the duty that has to be passed on will be as per the original excise invoice you have recived from your supplier from where you have purchased the raw material because you are not making any profit/loss out of those goods. You are just clearing the debt stocks and clearing the inventry.

For final conclusion, I strongly suggest you to constant the C/A as the excise matter is not that simple as we usually feel.

Thank you!

Regards,

Krunal Parekh