Reprocess of material lying in RGI due to degradable quality

[sanjay misra]

Dear Sir,

We are manufacturing chemical product . Some of our finish products are become non-marketable due to poor quality. We want to squeeze the material from the original packing and reprocess the squeezed material by mixing with regular production batch and again take output in RG I register.

Please suggest me what is the the procedure adopted under excise rule.What is the documentation required for reference.One suggestion i have received is to issue captive consumption invoice under rule 11 in the self name.

Thanks

Sanjay Mishra

[YAGAY andSUN]

Yes, captive consumption provision would be applicable. Also provide the intimation to your jurisdictional range superintendent of C.E.

[RAMNIRANJAN KANDOI]

Dear Sanjay,

Better to show in RG1 under column "any other purpose."

Prepare Excise Invoice at Nil rate & write Noti. No. 67/1995CE, duty will be NIL.Show this quantity in ER-1 with Value 0. & write Noti. no. 067/1995C E under Tariff Notification. U can inform to Excise Range but it is not compulsory & advisable because u will be showing in ER-1..

AI Summary

Captive consumption permits reprocessing degraded inputs with nil-duty invoice and recording the quantity in excise registers. Reprocessing degraded finished goods may be treated as captive consumption: issue an excise invoice at nil duty citing the tariff notification, record the quantity and nil value in ER 1, and show the transaction in RG 1 under 'any other purpose'; intimation to the jurisdictional range superintendent is advisable though not regarded as strictly compulsory where registers and returns document the reprocessing.