Company purhases M.S Angles, STeel Plates, etc for producing heavy engineering goods. It has taken excise duty credit when it was purchased. While production, some scrap is generated. So i want to know about excise treatment.
Does the company need to reverse some amount of the excise duy credit taken ?
Also reply me abt the rule number which governs the excise treatment on scrap.
06 May 2009
Where credit has been availed for the raw materials there should be a duty debit at the time of removal of the scrap. If the scrap is at the job workers end then either the JW or the princiapl would have to diuscharge the duty on the notional value of the scrap retained bythe JW. The movement of the scrap is important to decide the timing of the debits.
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