Use of finished goods entered into RG1 register for further manufacturing - procedure thereof

[Guest]

hi, Can I remove the goods which are in RG1 register into production again? is ther any procesdure avaliable for removal of goods from RG1 into production ?

[Surender Gupta]

There is no restriction in the central excise law. You must kept in mind that goods once produced and completed in all respect, can be removed only on payment of applicable rate of duty. Therefore, entry in RG-1 register is sufficient to prove that goods were completed in all respect. However, notification 67/95 allows the manufactured goods (completed goods)to be used captive in the manufacture of another excisable goods. Therefore, you need to check that the final goods are excisable or not. If the final goods are excisable goods, you can remove the goods from RG-1 to production again without payment of duty. But, if the final goods are not excisable, in that you can remove the goods from RG1 to production only after payment of appropriate duty of central excise.

AI Summary

Reusing RG1 Finished Goods in Manufacturing Allowed Without Duty if Final Goods Are Excisable per Notification 67/95 A user inquired about the procedure for reusing finished goods listed in the RG1 register for further manufacturing. The response clarified that central excise law does not restrict this practice. Finished goods can be reused in production without duty payment if the final goods are excisable, as per notification 67/95. However, if the final goods are not excisable, the goods must be removed from RG1 and used in production only after paying the applicable central excise duty. The RG1 entry confirms the goods' completion status.