DESTRUCTION OF EXCISABLE GOODS

[S.C. WADHWA]

Dear Experts,

We are manufacturers of food products and our some products attacting nil rate of duty and other 6% of
duty. We produced and store stocks of both varities in our godown after getting confirmed order from buyers.
Buyers could not lift the entire stocks during the expiry period. We have raised debit notes for the stocks
expired.
Now my query is that we want to destroy the stocks of exempted and dutiable both. Please give your expert
opinion whether we have to inform excise authorities and wait for their super-vision or destroy the stocks
after giving them any intimation.
Regards,
WADHWA

AI Summary

Destruction of excisable goods requires prior permission and supervised destruction, while exempt goods may be destroyed with intimation.
Destruction of excisable goods under Rule 21 requires prior remission by the competent Central Excise Officer and supervised irrecoverable destruction; the procedure and supervision apply only to dutiable goods. Exempt goods need no remission but manufacturers should intimate the department and keep separate records. Sales at heavily reduced prices will attract departmental scrutiny and require justification to dispel suspicion of duty evasion.