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Central excise

chandra sekar (Manager-Accounts) (387 Points)

23 December 2011

I am interested to know , the registers/records to be maintained for a new Central Excise assessee, who is a manufacturer of branded garmenhts.

V.P.Chandra Sekar

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CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 24 December 2011

I don't think there is any separate provision for books to be maintained by manufacturer of branded garments. CENVAT Credit can be claimed on the basis of documents as described in Rule 9 of Cenvat Credit Rules, 2004. Previously maintenance of RG 23 registers was mandatory for claiming CENVAT Credit. RG23 A & RG23 C were records of CENVAT credit availed & utilised. But now maintenance of such records is not mandatory.

Rule 9 (5) & (6) of the above said Rules are produced below:

"(5) The manufacturer of final products or the provider of output service shall maintain proper records for the receipt, disposal, consumption and inventory of the input and capital goods in which the relevant information regarding the value, duty paid, CENVAT credit taken and utilized, the person from whom the input or capital goods have been procured is recorded and the burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer or provider of output service taking such credit.

(6) The manufacturer of final products or the provider of output service shall maintain proper records for the receipt and consumption of the input services in which the relevant information regarding the value, tax paid, CENVAT credit taken and utilized, the person from whom the input service has been procured is recorded and the burden of proof regarding the admissibility of the CENVAT credit shall lie upon the manufacturer or provider of output service taking such credit."

Please refer to the article by Shri M N Hiregange in the following link. I am sure that will be helpful for you.

/articles/branded-garments-issues-in-central-excise-11892.asp