We are purchasing material in factory after duty paid. Same materials is rejected before production. Reason could be rusty, handling damage etc. Can we pay the excise duty on this scrap?
Vise versa if used in production and while making product materials rejected then can we pay the excise duty and how much.
In which excise rule it is mentioned.
Thanks,
Vinayak.
Clarification Sought on Excise Duty for Scrap Materials: Transaction Value or Proportionate CENVAT Credit Basis? A query was raised regarding the excise duty on scrap materials in a factory when materials are rejected either before or during production due to issues like rust or damage. The first response advised reversing the CENVAT credit equivalent to the credit availed on such materials. The second response questioned the duty liability when removing input as scrap, asking whether it should be based on the transaction value or the proportionate CENVAT credit availed. (AI Summary)
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