TMI BlogDESTRUCTION OF EXCISABLE GOODSX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, We are manufacturers of food products and our some products attacting nil rate of duty and other 6% of duty. We produced and store stocks of both varities in our godown after getting confirmed order from buyers. Buyers could not lift the entire stocks during the expiry period. We have raised debit notes for the stocks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expired. Now my query is that we want to destroy the stocks of exempted and dutiable both. Please give your expert opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on whether we have to inform excise authorities and wait for their super-vision or destroy the stocks after giving them any intimation. Regards, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... WADHWA - Reply By Rajagopalan Ranganathan - The Reply = Sir, The procedure for destruction of goods is as follows: - REMISSION OF DUTY AND DESTRUCTION OF GOODS 1. Legal Prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision 1.1 Rule 21 of the Central Excise Rules, 2002 provides for remission of duty in certain situations. 1.2 Where it is shown to the satisfaction of the Central Excise Officers specified in the Table below that goods have been lost or destroyed by natural or by unavoidable accident or are claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he may remit the Table on such goods as to the extent specified in the corresponding entry in the said Table, subject to such conditions as may be imposed by him by order in writing The competence to supervise destruction of excisable goods claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal has also been specified in column 4 of the said Table. Destr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction shall be carried on only after the competent officer has passed the order for remission. TABLE Sl.No. Competent Central Excise Officer Amount of duty empowered to remit Monetary limit to supervise destruction (1) (2) (3) (4) 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner Without limit, but normally any amount exceeding ₹ 5,000 2 Additional/Joint Commissioner ₹ 2,500 to ₹ 5,000 3 Deputy/Assistant Commissioner ₹ 1,000 to ₹ 2,500 Exceeding ₹ 20,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 Superintendent Below ₹ 1000 Rs.5000 but not exceeding ₹ 20,000 5 Inspector None Below Ks. 5,000 1.3 The proper officer may not demand duty (remit duty) due on any excisable including tea claimed by the manufacturer as unfit for consump ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion or marketing provided the goods are destroyed irrecoverably .Under the supervision of the proper officer and subject to the procedure specified hereinafter. However the above procedure is applicable only to dutiable goods. It will not apply to non-excisable goods or unconditionally exempted goods. - Reply By ashish chaudhary - The Reply = You need to await the order from competent autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity granting permission of destroy of excisable goods. Exempted goods can be destroyed without taking permission. But suggested to intimate to dept as both goods maintained at same premise. Maintain separate records evidencing quantitative details of goods of both type. - Reply By S.C. WADHWA - The Reply = Dear Experts, The value of stocks of dutiable is ₹ 100000/-. Some party want to ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it for ₹ 10000/- Plus taxes. We are ready to sell these items for ₹ 10000/- after paying duty @2.06%. Now my query is whether deptt has any objection in this regard. Please give your expert opinion. Regards, Wadhwa - Reply By Rajagopalan Ranganathan - The Reply = Sir, You have to convince the department with reasons for selling the stocks wotth Rs. 1,00,000 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 10,000. Otherwise the department will allege that you have sold the stocks at very low price to evade payment of proper duty. - DESTRUCTION OF EXCISABLE GOODS - Query Started By: - S.C. WADHWA Dated:- 5-5-2015 Central Excise - Got 4 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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