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

[Asked by Guest]

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

Excise duty on scrapped stock: remission with credit reversal or pay duty instead to clear materials quickly.
Excise duty arises on obsolete or scrapped closing stock; an assessee may apply for remission under Rule 21 with reversal of proportionate input credit upon permission, or opt to pay duty instead of awaiting remission. Captive use of scrap in manufacture of a dutiable final product does not attract additional duty, but use in manufacture of an exempt final product requires duty on the scrap used. The choice depends on the relative cost of duty versus reversed credit and operational considerations.