Duty reversed on scrap destroyed

[Asked by Guest]

Dear Sir,

We are a manufacture of Electrical Goods for produce the Electrical Goods we use the fiber strip.

There is some scrap generated from this fiber strip and sheets and these fiber scraps are not salable because no one want to purchase these fiber scrap . In these above case we need to reverse the excise duty on these scrap or not ?

Regards

Swapneswar Muduli

AI Summary

Marketability of scrap: non marketable manufacturing waste is not subject to excise duty; invoice nil value for records.
Non marketable manufacturing waste and scrap are not exigible to excise duty; Cenvat credit relating to such non salable scrap need not be reversed. For quantification and records the manufacturer should raise an excise invoice at clearance showing nil value and nil duty for the scrap.