sample duty utilize capital goods

[NARESH VIJAY]

Dear Sir,

Raw material sample export for testing. Duty debit from capital goods.please suggest me for which rule for duty debit RG 23 A Part II or RG 23 C Part II Register which can be debit duty.

Thanks

Akhilesh k saxena

[Mehul Pandya]

2.4 Utilisation of credit

2.4.1 The CENVAT credit may be utilized for payment of:-

(a) any duty of excise on any final products; or

(b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or

(c) an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such; or

(d) an amount under sub-rule (2) of rule 16 of Central Excise Rules, 2002; or

(e) service tax on any output service.

[Mahir S]

Sir,

You may debit it from either RG23A OR RG23C Register, wherever you have balance..

If you have debited duty from RG23C Part II i.e. capital goods debit, then also it is correct. so dont worry.

AI Summary

CENVAT credit utilisation: duty on sample exports may be debited from the register holding the available credit.
Use of CENVAT credit for duty debit on export of raw material samples is governed by the prescribed CENVAT utilisation provisions. The available credit may be applied towards excise duty on final products, amounts equal to credit on inputs if those inputs are removed as such or after partial processing, amounts equal to credit on capital goods if those capital goods are removed as such, liabilities under the relevant excise rule provision, or service tax on output services. Debit may be made from RG23A or RG23C Part II where balance exists.