valuation, treatement cenvat credit

[JAYARAMAN M]

in the case of manufacturing industries, kindly elucidate  the following

1.  treatment of samples removed from   factory, valuation, payment of duty etc.

2. in the case of ramaterial, wip,  finished goods become obsolete,  treatment in reversing the cenvat credit taken

3.  treatment  of goods such as ramaterial stores, WIP, FG   destroyed,  and treatment in reversing the cenvat credit

[Surender Gupta]

In case of samples, duty is required to be paid - You need to apply Rule 6 read with Rule 11 of Valuation Rules

In case the raw materials are obsolete or removed as such after availing the credit, you need to apply Rule 3 of Cenvat Credit Rules 2004.

Where the Finished goods are destored to lost, you need to pay duty of excise or apply for remission of duty before the appropriate authority - See Rule 21 of Central Excise Rules, 2002. Regarding WIP, to my mind if raw material has lost its original identity during manufacturing process, the same will be treated as finished goods.

AI Summary

Cenvat credit reversal required when inputs become obsolete or destroyed; valuation rules impose duty on samples removed from factory.
Samples removed from factory attract excise duty with valuation under Rule 6 read with Rule 11 of the Valuation Rules. Obsolete raw materials, WIP or finished goods require reversal of Cenvat credit under Rule 3 of the Cenvat Credit Rules, 2004. Lost or destroyed finished goods necessitate payment of duty or an application for remission under the Central Excise procedural rules; WIP is treated as finished goods if inputs lose their original identity during manufacture.