Excisable goods theft from factory

[MITSUI PRIME ADVANCED]

Dear Sir,

Pl. advice to us our Excisable goods theft from factory gate .

what is the process of Cenvat.

Pl. suggest to us your valuable advice.

Thanks and Regards

Arjun sachdeva

[YAGAY andSUN]

Dear Arjun,

Please check Rule 21 of the CE Rules, 2002 in this regard. Further, if you get compensation from the Insurance Company then you need to reverse the CENVAT credit availed on the inputs used in manufacturing of Finished Goods.

Regards

Team YAGAY and SUN

 

Central Excise Rules, 2002

21. Remission of duty.-

Where it is shown to the satisfaction of the Commissioner that goods have been lost or destroyed by natural causes or by unavoidable accident or are claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal, he may remit the duty payable on such goods, subject to such conditions as may be imposed by him by order in writing:

Provided that where such duty does not exceed ¹[ten thousand rupees], the provisions of this rule shall have effect as if for the expression "Commissioner", the expression " Superintendent of Central Excise" has been substituted:

Provided further that where such duty exceeds ¹[ten thousand rupees] but does not exceed ²[one lakh rupees], the provisions of this rule shall have effect as if for the expression "Commissioner" , the expression " Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be," has been substituted:

Provided also that where such duty exceeds ²[one lakh rupees] but does not exceed ³[five lakh rupees], the provisions of this rule shall have effect as if for the expression "Commissioner", the expression " Joint Commissioner of Central Excise or Additional Commissioner of Central Excise, as the case may be" has been substituted

AI Summary

Remission of duty: Commissioner may remit duty on lost or destroyed goods; reverse CENVAT if insurance compensation received. Remission of duty is available when excisable goods are lost, destroyed or unfit for sale before removal, subject to the Commissioner's discretion and conditions; supervisory levels vary with duty amount. If insurance compensation is received for lost or stolen goods, the manufacturer must reverse the CENVAT credit claimed on inputs used in manufacturing the finished goods.