As such removal

[venkat eswaran]

Sir/ madam,

We want to sell Raw matl to our job worker thro as such removal.  For that  whether the exact excise duty to be crhged what we take cenvat?  bcs we are taking cenvat thro addl duty by way of our dealer. we are manufactuer,  while we raise excise invoice we can chrg only 12% 2 % 1% only. IS this right? even we can pay excess duty only. IS it within excise rules? what is exact rules for AS SUCH REMOVAL.

VENKAT

 

 

[Shrikant Joshi]

As per Cenvat Credit Rule, 20043(4) (b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or (c) an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such;

You have to reverse Cenvat Credit as you availed.  Secondly put remark on Invoice "Cleared under Cenvat Credit Rule, 20043(4) (b)"

[venkat eswaran]

Sandeep sir, thanks for ur reply.

one more clarification is if we pay excess amount what we taken cenvat credit is ok? bcs we bought goods dealer whcis is imported item so they chrgd additioanl duty  also that we are taking credit.  since are manufacturer we cannot show that additional duty in our excise invoice. so we calcualte basic rate on that rate we pay 12.36%  excise duty which is of course more that the cenvat credit we have availed. surely not the less amount than cenvat credit. is it ok?

[Shrikant Joshi]

Ok but for the Audit purpose, you should able to co-relate the transaction and explain to Officers

AI Summary

Cenvat credit reversal required when inputs or capital goods are removed as such; ensure invoice remark and audit trail. Removal of inputs or capital goods 'as such' to a job worker requires reversal of Cenvat credit equal to the credit availed, and invoices should carry a remark indicating clearance under the relevant Cenvat Credit rule; where duty paid exceeds credit taken, the manufacturer must reconcile credits, duty paid, and transaction records for audit.