Removal of Scrap/Waste from factory after 17.03.2012

[vinay wakde]

We are receiving various capital goods & their components, spares & accessories etc against which we are taking CENVAT credit.  We are receiving different types of scrap/waste (i.e. of MS/SS/Rubber items etc) from our main plant. Prior to 17.03.2012 we have paid Excise duty as per the transaction value while removing such scrap/waste from our factory under cover of Excise Invoice.  Kindly suggest us the system to maintain the account of scrap/waste which co-relates the CENVAT credit taken to satisfy the Department that duty paid /reversed by us for removal scrap/waster after 17.03.2012 is on higher side, in view of changes in Rule 3(5A) after Budget.

Regards,

VINAY

 

AI Summary

Company Seeks Guidance on Excise Duty for Scrap Removal Post-17.03.2012; Rule 3(5A) Changes Influence Record Maintenance A company is seeking advice on handling the removal of scrap and waste from their factory post-17.03.2012, following changes in Rule 3(5A) after the budget. They have been taking CENVAT credit on capital goods and paying excise duty based on transaction value for scrap removal. They seek guidance on maintaining records to justify the duty paid or reversed, which they believe is higher. Responses suggest paying excise duty on waste and scrap based on the higher of scrap value or transaction value.