We are into manufacturing sector,We have some sales return material with us lying in stock from long period and it reflect in our ER-1 every month.This material are non-returnable.kindly let us know, what to do with this material? Can we sell it in scrap? we had taken cenvat credit on this goods during that period?
30 October 2013
If that material was non-excisable then you should not shown in the opening and closing balance. If you have shown then you can sale as an scrap.
31 October 2013
Thank you sir for your reply actually the material are excisable materials if we are selling it to scrap then we have to pay the duty of scrap + the difference between the original value of material also.
31 October 2013
You should intimate to the excise department that non-excisable goods quantity is mentioned in the opening and closing balance. deduct from there and submit a letter before the superintendent office.
CAclubindia
