Repair of Excisable Finished Goods

[Pradeep Kaushik]

Dear Sir/s,

We are a manufecturer of Excisable Goods. There is some Finished Goods, required to be Repaired.

We have taken the record of the Finished Goods in RG-1 Register. Do, we have to debit the duty as per value of the goods, we have to repair.

Please let me know the process as per Central Excise Rule. 

Is there any other way for the repair Process of the Finished Goods.

Your early reply will be highly obliged.

Best Regards.

Pradeep Kaushik

[YAGAY and SUN]

Please, prior intimation to the jurisdictional Range Superintendent of the C.E. along with the complete nature of the repair.

If any parts, components are required to be replaced then you would have to also declare it to the C.E. Department and will have to reverse the CENVAT credit on such parts, components.

[Pradeep Kaushik]

Respected Khatri ji,

Thanks a lot for the reply.

Please let me know the procedure in detail alongwith rules.

what documents we have submit for taking permission fro C.E. Department and how the C.E. deptt. will alow us for the repair work.

 Is there anything more, we have to do after finishing the Repair Work.

Please Suggest.

Best Regards

Pradep Kaushik

 

[YAGAY and SUN]

Though there is no specific Rule enshrined in the C.E. Laws.  But you may approach to the Jurisdictional Authority and state the facts to him by submitting the permission or intimation letter as the case may be and obtain the necessary permission in this regard.

A simple letter, with all relevant facts that why you need to repair the goods, Copies of POs, repair plan alongwith process flow chart,  Change in assessable value (upwards/downwards etc.), Balance of the qty of the finished goods in the DSR which requires such repair, should be communicated/intimated for the purpose of such permission.

AI Summary

Repair of excisable goods requires prior notice and reversal of CENVAT credit when parts are replaced. Prior intimation or permission from the jurisdictional Range Superintendent is required for repair of excisable finished goods. If parts or components are replaced, those must be declared and the CENVAT credit on such parts reversed. Compliance entails submitting a permission/intimation letter with relevant facts, purchase orders, a repair plan and process flow, expected change in assessable value, and inventory balances for the goods to be repaired, and reflecting authorized changes in records post-repair.