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ED on waste and scrap

Kirti Trivedi (Accountant) (31 Points)

17 November 2007

Sir,

Incase of pharmaceutical product manufacturing, is required to maintained record and reverse the Excise duty on waste and scrap like glass bottle, al. foil , PVC film ..etc and empty container of raw materials generate during packing and after dispensing of raw material ?

Regards & thanks

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3 Replies

(Guest)

yes definitely, u should maintain proper records for the waste and scrap

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CA. BIJENDER KR. BANSAL (ACA, B.COM) (8148 Points)
Replied 17 November 2007

Yes, you have to maintain proper records for the waste & scrap. beacuse you have avail the cenvat credit on material. The waste & scrap arises from such material, i.e you have to reverse duty part on such scrap & waste material .

Vijay K. Agrawal (Service) (608 Points)
Replied 21 November 2007

Dear Kirti, 1. you ahve to maintain separate record for waste and scrap. 2. if scrap is generated from the material on which you have taken cenvat you will have to pay ed on transaction value( value at which you are selling). not reversal of duty. 3 . if it is arises from material on which no cenvat has been taken then there is no requirement to pay ED.at all