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Removal of Input as such

Prashant (Accounts / Stores Officer) (36 Points)

11 October 2009

We are engaged in manufacture of Acrylic Emulsion Polymers.Also we are doing job work for M/s XYZ ,a MNC Co..said company is giving Raw Material for Job Work.the same is imported by that company and giving us on their own Excisable Invoices.

During our EA 2000 audit Excise Superintendent has pointed out that in the Excise Invoices issued by M/s XYZ ,it has been not mentioned that '' Ramove as such under C. Ex.........'' due to this Ex.People told us to reverse the duty taken on said invoices and to pay interest on that amount.

Now the duty taken is about 1Crore 20 Lacks.

Please help us in this matter.if their is any procedure ,notification or rule to correct above mistake, Kindly mail me the same on manjrekar_prashaant @ rediffmail.com

waiting for response.

Thanks,

Prashant..M

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1 Replies

Satish (CA Final Student) (479 Points)
Replied 11 October 2009

First of all, I did not understand why M/S XYZ issued the material under the cover of excisable invoice when such material could have been removed under Rule 57 (f) (3) / 57 (f) (4) under the cover of a challan. Secondly. When the goods are removed to send further to job worker for processing, the duty is reversed by the manufacturer and after receiving the processed goods from the job worker within 180 days, the manufacturer can again avail the credit of duty reversed earlier.

In your case, you are the job worker for M/S XYZ and you are not entitle to avail any CENVAT credit on goods sent by M/S XYZ for processing. Why you need to reverse the duty when you have not availed any credit of duty in such transactions?? Please go thru the matter or consult a good excise consultant. You can definitely come out successfully.