Dear all Experts
We are registered manufacturing company in excise. We sale Parts and accessories of the motor vehicles .CETSH No 87089900.we have rejected material of past few year our vendor not taken it back. We want to sell it as a scrap. We want to know what the process of scrap sale in the point of excise and what the procedure to sell it as a scrap.
Thanx and Regards,
Amit
scrap sale on manufacturing process liable to TCS
If the materials which you have rejected is "input" and not taken back by the buyer and if you availed credit on this materials than from excise point of view you need to reverse the entire credit which you have availed on this material.
For clearing the goods you need to raise an excise challan. Though you treat it as scrap, since it is not manufacturing scrap you can not pay duty on the scrap value.
Regards
Dayananda
CAclubindia
