Excise duty collection

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Bhanumurty (Querist)
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01 October 2015 if i purchased a good for which excise duty was paid.with those goods i made a new product which was sold to some person and collected excise duty on that product.after 1 year the purchaser from my product (person) reported that some of the items used in your product not some good is not working and repair & replace the same, after checking my technician told that the good is not working is which we purchased,now we are replacing the same with new product(which we purchased earlier),now my doubt is while charging fee can we collect excise duty on that product(since we are selling the same-of course we purchased earlier after paying excise duty)---kindly answer the same

Arun Kumar Singh

Arun Kumar Singh (Expert)
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05 October 2015 If you have taken the cenvat credit at the time of purchase of inputs then you need to pay duty if you have not taken the credit then no need to pay duty at the time of removal of goods.

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Bhanumurty

Bhanumurty (Querist)
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13 October 2015 u have not answered my doubt, my doubt is already purchased goods for which we paid excise duty,those goods were used in my new product.i already made excise returns in those goods.without those goods we couldnot make our new product.our new product was already sold to somebody.that person asked us to check the same product what we sold our technician stated that one of the good (we purchased after paid excise duty) was not functioning, now our customer called replace the same.now we are using that good( we purchased after paid excise duty),can we bill for that by including excise duty or not?

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Arun Kumar Singh

Arun Kumar Singh (Expert)
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17 October 2015 At the time of return of your own defective goods you should take the cenvat credit on the basis of challan issued by your buyer. You need to pay excise duty at the time of removal of replacement of new product. If goods price is more than the defective material then buyer will pay the excise duty of deference amount.