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Excise duty on goods leaving service staions

625 views 1 replies

Sagnik Sanyal

Management Trainee

86 Points Posted on 19 September 2012

Dear Sir/Ma'am,

Our company buys electronic goods from different manufacturing companies & sells them under its own brand. It does not pay the excise duty in repect of those manufactured goods. Thereafter, when the goods are returned back as defective goods they are sent to a service centre owned by our own company where they are repaired & sent back to the dealers for selling them back in the market. In this respect kindly explain to me that :-

Will we be liable to pay excise duty on those goods which leaves inside our service station after being rectified ?
Can we take CENVAT credit in respect of those electrical products which comes inside our service station ?

Regards,

Sagnik Sanyal

Replies (1)

U S Sharma

glidor@gmail.com

21068 Points Posted on 19 September 2012

1. good brought out and sold in market...........( assumed that you matain stock inventory)

2. goods returned back as defective, and transferred to service centre ( its reversal of sale and then transfer of stock to service centre)

3. as the service centre is just servicing the goods, and not making or assembling the same, ED is not applicalble on frist sight .

4. you have to co-relate the stock book with service centre stocks.

5. resonable period should be considered for bringing back such defective goods, as say if a switch has lifespan of 1 year and after completion of 6 months its brought to service centre, then it might be taken as new manufacture, coz half the life of switch was over, and fresh switch will carry fresh 1 year life.

branding of goods amounts to manufacture, but unless the same is put with details, comments can not be proper.

put your more details, to get more focused reply.