How we will debit the Excise duty if we write off.

[Swapneswar muduli]

Dear Sir,

We have some stocks which we are showing in RG-1 as a closing stock from last 2 years when we doing analysis we found that these items are get absolute so these items are not going to sale in future. management decide for doing scrap these items. further some items are which are we can use these materials in our internal for making some other material.

Query

1) Some items are going to scrap in this case how we will remove the stock's from RG-1 and paid the Excise duty.

2) If some items are already declared in RG-1 and showing closing stock these items are not sale in future but we can use the same items for making some another F.G items so in this case how can we accounting these stocks in RG-1 and how we will discharge the Excise duty liability also.

Regards

Swapneswar

AI Summary

Company Seeks Guidance on Managing Excise Duty for Obsolete Stock Using Rule 21 of 2002 Rules; CBE&C Circulars Referenced. A company is dealing with obsolete stock listed in RG-1 and seeks guidance on managing excise duty. They plan to scrap some items and use others internally to produce new goods. Respondents advise consulting specific CBE&C Circulars and Rule 21 of the 2002 Rules for remission of duty on unfit goods. One suggests that if scrap is used to produce exempted goods, duty must be paid. Another advises applying for remission under Rule 21 or, if time-constrained, paying duty directly and reversing credit on inputs, considering the marginal difference between duty and credit.