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

Ferrous waste classification permits CENVAT credit use on spoiled CI castings cleared as scrap; comply with invoice and register rules.
Spoiled CI castings are classifiable as ferrous waste and may be cleared as scrap for re melting on payment of duty; the duty payable on such scrap can be discharged by utilising CENVAT credit taken on the CI castings, provided the scrap is removed after issuance of an excise invoice and entry in the daily stock register in accordance with the excise procedural requirements.