We are registered manufacturing company in excise. We sale Parts and accessories of the motor vehicles .CETSH No 87089900.we have rejected material of past few year our vendor not taken it back. We want to sell it as a scrap. We want to know what the process of scrap sale in the point of excise and what the procedure to sell it as a scrap.
15 September 2011
1) rejection after clearance of goods from factory site after payment of duty will not entitle you to get back the duty paid.
2) if the goods are entered in RG-1(DSA), then you have to ask the R/O for physical supervision of "destruction of finished goods" and reverse the input credit in RG23A-Part2 which is used for such goods.
3) other than above 1) & 2) you have to enter the scrap as bye-product in DSA(RG-1) and clear the same on invoice and pay duty on transaction value.
CAclubindia
