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

Use of finished goods in RG1 as captive inputs allowed without duty when the downstream product is excisable. Entry in the RG 1 register evidences that goods are completed and, as a general rule, completed goods can be removed only on payment of applicable duty; however, completed goods may be transferred from RG 1 back into production without payment of duty when they are used as captive inputs in the manufacture of another excisable product, whereas removal for manufacture of non excisable goods requires payment of the appropriate central excise duty prior to removal.