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In excise - reversal

M Santhana Venugopal (Finance Executive) (28 Points)

06 May 2012

Hi., In manufacturing , if the manufacturer used some materials for sample purpose. Is respective Raw/Packing materials should reverse as per Excise rule?. If yes please share the excise rule of the same.

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3 Replies

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 07 May 2012

Not necessarily, you can claim the credit with other goods.

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Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 07 May 2012

Not necessarily, you can claim the credit with other goods.

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 07 May 2012

CENVAT Credit is eligible for input used in the factory by the manufacturer of the final product. If the final product is excisable then you can utilize the credit of input for payment of final duty. If material used for other purpose not for output product or output service, the input credit is not eligible. If you draw some inputs for making samples and samples are finally excisable product, then you can utilize the credit otherwise credit is not eligible.