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Difference between spare parts and finished product

Ram kr. (Buisness) (883 Points)

04 May 2009

Dear Friends,

If we sale our spare in individual packing to various customer. Should we make spare parts entry in rg-1 register or only finished product. Pl. tell what is the major difference between spare parts and finished product in excise point of you.

thanks

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3 Replies

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 05 May 2009

when you are clearing spare parts from your factory, it is your finished product too.

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Ram kr. (Buisness) (883 Points)
Replied 05 May 2009

Dear Sir,

Does quantity is matter in this regard.

Thanks

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 07 May 2009

Quantity is irrelevant. If spare parts is manufactured by an assessee, clear it on payment of excise duty. If it is brought out item, on which credit has been taken, clear it clearance as such.