TaxTMI 
TaxTMI 
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.
EXCISE RULES
09 Jul 2014 
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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. (AI Summary)
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. (AI Summary)