EXCISE RULES

[JITENDER THAREJA]

We purchased CI Castings but spoiled during processing. Against this CENVAT Credit was taken and we now propose to dispose off as CI Scrap at scrap rate. Please intimate applicable Excise Rule in this respect or else advise us suitably. Thanks.

[Rajagopalan Ranganathan]

Sir,

CI Castings spoiled during processing is classifiable under Heading 72.04 of first schedule to Central Excise Tariff Act, 1985 as Ferrous waste attracting duty @12%. Therefore you can clear such CI Castings as scrap/waste for re-melting and for payment of duty on such scrap you can utilise the credit taken on C I Castings.

[Mahir S]

Scrap is to cleared on issuance of Excise Invoice under rule 11 and after entering the same in the Daily Stock Register under rule 10 of Central Excise Rules , 2002; and on payment of duty on such Scarp Value.

[JITENDER THAREJA]

THANKYOU VERY MUCH RAJAGOPALAN RANGANATHAN JI and NAVED .

AI Summary

Company Can Clear Spoiled CI Castings as Scrap Under Heading 72.04, Utilizing CENVAT Credit, Per Expert Advice. A company faced an issue with CI Castings that were spoiled during processing and sought advice on the applicable excise rules for disposing of them as scrap. An expert advised that the spoiled castings fall under Heading 72.04 of the Central Excise Tariff Act, 1985, as ferrous waste, attracting a 12% duty. The company can clear the castings as scrap for re-melting and use the CENVAT credit taken. Another expert recommended clearing the scrap by issuing an Excise Invoice under rule 11 and recording it in the Daily Stock Register under rule 10 of the Central Excise Rules, 2002.