Dear sir,
I have some doubt regarding ours unit Manf. of Boiler components and we are despatching our products to Mega power project on behalf of BHEL, TIRUCHY. At the time of we are purchasing huge quantity our Raw materials (BEAM, ANGLE, CHANNEL,ROD, ROUDS, PLATE) and still lying some portion idle after completing our BHEL order. Hence we are planning to sale our Raw materials AS SUCH. Dept., refusing to sale , due to rare case you may sale your RM , but it is not continue to sale AS SUCH.
As per rule simply they indicate manufacturer also sale RM as such. But it was not indicated continue to sale or not?
Please give your suggestion.
With Regards.
R.MURALI
[email protected]
Clarification Sought on Selling Surplus Raw Materials Under Central Excise Rules; Focus on CENVAT Credit Reversal Compliance. A forum participant sought clarification on selling surplus raw materials from a boiler component manufacturing unit, initially procured for a project with BHEL. The department opposed continuous sales of raw materials 'as such.' Responses varied: one suggested questioning the department's basis for restrictions, another warned of potential overlap with trading provisions under Central Excise laws, while others clarified that sales to manufacturers could proceed with reversed duty credit. It was emphasized that the department cannot restrict business decisions if they comply with Central Excise Rules, specifically regarding the reversal of CENVAT credit. (AI Summary)
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