Removal of Scrap/Waste from factory after 17.03.2012, Central Excise

[vinay wakde]

We are receiving various capital goods & their components, spares & accessories etc against which we are taking CENVAT credit.  We are receiving different types of scrap/waste (i.e. of MS/SS/Rubber items etc) from our main plant. Prior to 17.03.2012 we have paid Excise duty as per the transaction value while removing such scrap/waste from our factory under cover of Excise Invoice.  Kindly suggest us the system to maintain the account of scrap/waste which co-relates the CENVAT credit taken to satisfy the Department that duty paid /reversed by us for removal scrap/waster after 17.03.2012 is on higher side, in view of changes in Rule 3(5A) after Budget.

Regards,

VINAY

 

Posts / Replies

[ANAND SHEMBEKAR]

OK I can suggest the system for the same

 

 

Thanks

 

A M SHEMBEKAR

CELL NO. 9421187122

[Pradeep Khatri]

You would have to pay the Central Excise Duty on the waste and scrap of capital goods either on scrap value or transaction value, whichever is higher.