Excise Matter - Urgent

1251 views 3 replies

Pratik Patel

Service

48 Points Joined May 2008

1. Rejected Material Received in factory it is necessary to Submit any Intimation to the Excise Department. Pl. inform complete procedure ?

2. We supply our Transformar for Repairing. He need to change some part of Transformer. After repairing the party raised Excise Invoice with the Excise Duty. And he did not raised Service Tax Invoice. Can we take credit of Excise Duty ?

3. We purchase an Electronic Motor from supplier He raised the Excise Invoice. When we received the motor at factory we found there is different serial number of motor in Excise Invoice and on Motor . Can we take credit of Excise Duty ?

4. We are a Drum manufacturer as per the order we are stick label on Drum but due to some price change we are issue Invoice of Sticker to the party without issue the invoice. Can we have to debit Excise Duty which we take credit of when we received the Sticker invoice ?

Replies (3)

shivani

consultant

122 Points Joined January 2009

Dear

For ur first querry if u receive back rejected material to avail duty credit u have to file intimation to the Dept and goods insp. has to be done by them.OR Get repair and send back to them

For second qureey u sending for repair the repaier will be replace some items for which he charge duty and collect labour charges.For duty portion u can avail cenvat it being input for u and he will raise service tax invoice bcoz its not pure jobwork.as per per cex notification exempt from Ser tax

For 3 querry --send back goods at his risk under challan or get corrected invoice as per goods available if u feet deserved...

4 querry is not clear to understand

Rajesh Kumar

Advocate- Tax

7806 Points Joined December 2008

1. To receive rejected material, no intimation is required. Kindly refer to Rule 16 of the central excise rules. You can refer to this article for detailed analysis.

https://www.articlesbase.com/law-articles/interpretation-of-rule-16-1172627.html

2. Service Tax is payable on repair and maintenance service, hence this should be paid. However, on the parts used in transformer- core, coil etc., whatever is replaced, C Excise duty is payable.

Whether you are eligible to take credit or not depends upon your use of the product.

3. You are eligible for credit. Get the invoice corrected or get communication from the supplier on his letter, which will be useful in case department raise any such issue in future.

4. If stickers has been issued as such, reversal of credit is required.