Writte off some SFG Material and transfer to scrap location

[Asked by Guest]

Dear Sir,

we write-off some stock like (SFG & R.M )and same items are transfer to scrap location. and when we clear the scrap from factory we paid Excise duty on that scrap.

So in this above case we need to pay Excise duty for the write off the SFG and R.M or not ?

Swapneswar Muduli

AI Summary

Cenvat credit reversal applies to written off inputs; paying duty on removal typically avoids credit reversal.
If semi-finished goods are removed on payment of excise duty, input credit need not be reversed; for written-off raw materials, duty must be paid on the transaction value or an amount equal to the credit taken, whichever is higher. Rule 3(5B) requires reversal where inputs are fully written off in the books, so manufacturers should align book write-offs with duty payment practice and follow departmental circular guidance.