Cenvat credit refund - 100% eou

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CS Kruti Parekh (Querist)
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07 August 2011 For filing a refund claim by a 100% EOU under Rule 5 of CEA, 1944, for refund of unutilized cenvat credit of the inputs & inputs services used in exported goods, how do to find out that inputs of which input invoices have actually been used in the goods exported in a particular month/quarter ?

Pls. answer urgently. The excise people want that details of inputs actually used in manufacture of goods exported should be given separately for each ARE-1.

U S Sharma

U S Sharma (Expert)
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08 August 2011 Maintain private production register to resolve the issue,

any product has some norms for input consumption (specific or lumpsum) but it should be recorded in such production register.

Balance stock lying in hand at the end of month/period should be reduced from the account

formulea

opening stock + purchase during the month - closing stock = stock consumed

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CS Kruti Parekh

CS Kruti Parekh (Querist)
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08 August 2011 You are right sir. But the goods exported in a particular month may not have been produced in the same month. We might have opening stock of finished goods. We do have norms for input consumption so we can work out the details of the total quantity of raw material actually consumed in the goods exported. But how do we track it input invoice wise which the excise department wants because being a 100% EOU, we are using duty paid as well as duty free material. So how to go about this ?

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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09 August 2011 There are two recognized system of RM/FG issue: FIFO or LIFO, whichever is being followed must be consistently followed.
Now need is to have RM Reco with FG, you have two options either to calculate in Backward method or Forward method.

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U S Sharma

U S Sharma (Expert)
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09 August 2011 make a tabular chart of all inputs and absorb the requisite materials, give a record shape to it through production register.

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