Finished Goods used for Remanufacturing or reprocessing

[MITSUI PRIME ADVANCED]

Dear Sir,

We would like to inform u that as per logical using of finished goods for  reprocessing of manufacring due to non marketability   

 As a practical RG 1 and allied register maintain as per Central Excise Rule, 2002 and  Cenvat Credit Rule, 2004 time to time amend by notification as a ahead accordingly RG 1 (“as a finished goods production and clearance registered with Duty payable”) is a Finished Goods register if any goods clearance form RG 1 through Sales or any other , through sales of finished  good understanding all of them, but sales or clearance form RG 1 without payment of duty  is not clear , Finished  Goods  out from RG 1 register  for reprocessing and remanufacturing processing  in our business demand and maintain a good quality  . firstly finished goods checked by our quality control Department for the purpose of maintain a  good quality but  some goods is not a marketable, so that it’s a reprocess able “Finished Goods” and remanufacutable so also be out form our RG1 (Finished goods Register ) without payment of duty , Phisical goods remove from finished goods location to production location for reprocessing purpose  and in our ERP System., which  is not marketable under  of Central Excise Act 1944,  not liable  duty.  Duty payable on  Clearance of Finished goods form factory gate “called as a Clearance “and goods also be a marketable.

my query is, in which  rule or section covered under central excise law or any other law.

if any case is decided by tribunal high court or suprime court of india,

if any clearification issued by Board of Central Excise, Service Tax and Custom

 Please advice to us above mention details related to any notification .

if this information should inform to  Supt. Of Central Excise office if yes , please provide rule or Section under central Excise law which is mention above sentence.

Regards

Arjun Sachdeva

Mitsui Prime Advanced Composited India Pvt Ltd.

Neemrana

Cell No. 09251400801

[YAGAY and SUN]

It would be better if you take a general permission from the Commissioner of Central Excise by stating the complete manufacturing process flow chart and by enumerating why it is necessary in your case to follow this practice.

This will help you alot.

[Mahir S]

1)  Inform the Jurisdictional Supdt. of your range about the procedure to be followed, as detailed below.

2)  Maintain a separate register of finished goods showing closing balance of finished goods quantity ( as per Rg1 register) Enter date and time for taking out the finished goods for further reprocessing (with remarks thereon as to which process to be undertaken), and then re-add the same in the register with date and time, after completion of the reprocess.

3)  Also maintain and issue a Challan Book to be issued with the factory premises, at the time of taking out the finished  goods for further process and making further entries in the same challan after completion of the reprocess. The authorised person shall sign the challan at both the times.

4) Just ensure that there is no variance in the weight difference. Else, the same can also be re-entered in the RG1 register, after informing the range supdt.

AI Summary

Finished goods reprocessing requires notification to the jurisdictional superintendent and strict RG1 register and challan controls. Unmarketable finished goods removed for reprocessing may remain not liable to excise duty until cleared as marketable; seek general permission from the Commissioner with a process flowchart and rationale, inform the jurisdictional Superintendent, maintain a separate finished goods movement register tied to RG1 with dated/time entries and remarks, issue and retain signed challans on removal and re entry, and monitor and address any weight or quantity variances (with potential RG1 adjustment after informing the range Superintendent).