Inputs Sell

[Avinash Bhavsar]

Dear Sir,

We are manufacturing of Automobile parts our unit is in Nashik (Maharastra) we received the inputs from Surat (Gujrath) the inputs are exsenot from duty, can we sell the inputs? under which rules, also give the duty slab.

Regards,

Avinash Bhavsar

[rajkumar shukla]

IT APPEARS THAT INPUTS RECEIVED ARE EXEMPT FROM DUTY. IF THAT IS SO ,NO DUTY WOULD BE CHARGEABLE. IF THESE ARE DUTY PAID YOU MUST HAVE AVAILED CREDIT . IN THAT CASE, YOU WILL HAVE TO REVERSE THE CREDIT TAKEN IN RESPECT OF INPUTS CLEARED.

[rakshit verma]

If inputs are not excise duty paid, the same can be cleared without payment of duty against the invoice not maintained for excisable goods. For that you have to maintain separate series of invoice book with the prior permission of the jurisdictional Assisstant / deputy commisioner.

 

rakshit verma

[email protected]

[NK SHETE]

 Cenvat Credit Rule, 2004 are amended during last budget. Accordingly 'Trading' is exempted service. In given case the unit is nothing but appears to trade. If so and party is availing cenvat credit, then this being exempted service, it seems that provisions of Rule 6 ibid are applicable and party has to opt for one of the procedures.

AI Summary

Exemption from excise duty permits clearance of inputs without duty, but reversal of Cenvat credit is required if credit availed. If inputs are exempt from excise duty they can be cleared without duty, but where Cenvat credit was availed on those inputs the credit must be reversed upon clearance; non-duty-paid clearances should use a separate invoice series with prior permission, and where trading is an exempted service the supplier must follow the procedural options under Rule 6 for credit adjustment or reversal.