03 January 2013
I have doubts in the excise on the following issues. Please clarify me. Is it required to be maintained by the manufacturer even now? The accounts manager who is looking after this says that these are all need not be maintained and it is old. Is it True? If not please tell me with the relevant rules or sections as the case may be. 1)Form IV register of receipt and issue of Raw Material. 2)RG23A Part I – For Accounting of Receipt of Raw Material 3)RG23C Part I – For Accounting of Receipt of Capital Goods 4)Records of inputs sent for job work outside the factor under Rule 57F(4)
5) The concern which i am assigned for audit is a manufacturing concern, they need to pay excise duty for the manufacture. Can they take service tax input credit on office maintenance expenses and administrative expenses for payment of excise duty? (please specify me the rule or section)
6) If the manufacturer avails any abatement services, then the service tax paid for the abatement services can it be take as service tax input credit for payment of excise duty? (please specify me the rule or section)
7) Can u please clarify me on the service tax input credit to be taken in case of transportation ( really confused about 25% and 75% and all)
8) Some of the goods sold are rejected by the customers. Those rejected Goods Cenvat credit is taken. the rejected goods are sold as scrap, for the scrap sales excise duty is paid. Department contends that Cenvat credit utilised for producing that manufactured goods should be reversed, therefore excise duty has to be paid on the goods returned by the customer as if it is good one. Is it true please provide me with the sections or case law.
Even on today it is necessary to Maintain RG23A and other register as described by you.all are basically ascertain goods movement and lint same with financial accounts.
So far as other questions are concerned it is not possible to answer without additional information, nature of work etc.
21 July 2024
I understand you have several questions related to excise duty and service tax. Let's address each query one by one:
1. **Form IV register of receipt and issue of Raw Material:** - As per the Central Excise Rules, 2002, Rule 10 requires the maintenance of records like Form IV for receipt and issue of raw materials. This is crucial for compliance and audit purposes. The requirement to maintain Form IV still exists unless there has been a specific amendment or notification exempting its maintenance. It's advisable to check the latest notifications or circulars issued by the Central Board of Indirect Taxes and Customs (CBIC) to confirm any changes.
2. **RG23A Part I – For Accounting of Receipt of Raw Material:** - RG23A Part I is used for accounting the receipt of raw materials under Central Excise. Similarly, RG23C Part I is used for capital goods. These registers may still be required as per the rules unless exempted by specific notifications. These records help in tracking the receipt of materials and capital goods eligible for CENVAT credit.
3. **RG23C Part I – For Accounting of Receipt of Capital Goods:** - Same as above, RG23C Part I registers are required unless exempted by specific notifications.
4. **Records of inputs sent for job work outside the factory under Rule 57F(4):** - Rule 57F(4) of the Central Excise Rules, 2002, mandates maintaining records for inputs sent for job work outside the factory. These records help in tracking inputs sent out and returned after job work. The requirement to maintain such records typically still exists.
5. **Service tax input credit on office maintenance and administrative expenses:** - As per the CENVAT Credit Rules, 2004, office maintenance and administrative expenses generally do not qualify for availing CENVAT credit unless they have a direct nexus with the manufacturing activity. Rule 2(l) specifies eligible inputs or input services. Verify if these expenses meet the criteria under Rule 2(l) for input services.
6. **Service tax paid for abatement services as CENVAT credit for excise duty:** - Service tax paid on abatement services can be availed as CENVAT credit under certain conditions. Rule 3 of the CENVAT Credit Rules, 2004, specifies the conditions for availing credit, including documents required and procedures to be followed.
7. **Service tax input credit on transportation:** - Transportation services used for inward transportation of inputs or capital goods can generally avail full credit of service tax paid under Rule 2(l) of the CENVAT Credit Rules, 2004. For outward transportation of finished goods, 70% of the service tax paid is eligible for credit. Verify the specific conditions under Rule 2(l) for availing credit.
8. **CENVAT credit reversal for rejected goods sold as scrap:** - When goods on which CENVAT credit has been taken are rejected and sold as scrap, excise duty is payable on the transaction. As per Rule 3(5B) of the CENVAT Credit Rules, 2004, the amount of credit attributable to inputs used in such goods needs to be reversed. Ensure compliance with this rule to avoid disputes with the department.
For detailed and specific compliance, it's advisable to refer to the latest notifications, circulars, and the Central Excise Act, 1944, as well as the CENVAT Credit Rules, 2004. Consulting with a tax professional or a qualified chartered accountant can also provide tailored advice based on the latest legal requirements and interpretations.
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