Credit availed Capital Goods are sold as Scrap. What is to be done?
R. Please pay duty on the Transaction Value at which the Scrapped Capital Goods is sold. Q. In our Factory, during the manufacture Scrap arises. We havent stored them separately. It is mixed along with other scrap like worn out building materials, fencing etc., what to do? R. Estimate the scrap that has arisen because of manufacturing activity with sound technical methods and pay duty on that quantity. If your estimation is scientific, generally the Department will accept the quantification. Q. Certain quantity of packing material is damaged while put into use, and certain other quantity is damaged while storage. What is the treatment under the Law. R. No credit expunction is necessary wherever the packing material is damaged after it is put into use. However, credit is to be expunged, wherever it is lost by mere storage. Q. We are an EOU and certain Chemicals are imported in Barrels. After the chemicals are emptied the Barrel is sold. Is there any duty liability? R. YES. Re-usable con
