Procedure for destruction of goods and remission of duty :

The procedure to be followed for destruction of goods and remission of duty thereon shall be, as follows:

(i) A manufacturer desiring to destroy and seek remission of duty in respect of the excisable goods manufactured in his factory on the grounds that the said goods have been rendered unfit for consumption or for marketing, will make an application in duplicate to the proper officer indicating complete details of the goods and reasons for destruction, along with the proof that the goods have become unfit for consumption or for marketing such as report of chemical test or any other test, conducted by a Government recognised laboratory.

(ii) The application will be quickly processed by the said Officer. In case the he is competent to allow destruction and remission (in terms of para 11.1 above) he will proceed to take necessary action at his level.

(iii) The officer will scrutinise the application and based upon the information given by the assessee, if found in order, allow destruction of goods and remission of duty .

(iv) Where only physical verification is required, the same may be conducted by the remission granting authority (proper officer), as specified above and upon his satisfaction, destruction of goods and remission of duty may be allowed.

(v) In case of any doubts, the competent authority may, for reasons to be recorded in writing, order for drawing of samples and its testing by the Central Revenue Control Laboratory or the Customs House Laboratories or any other Government recognized laboratories where the aforementioned laboratories cannot test the samples. The testing of samples will be done in the manner specified in the Basic Excise Manual as modified by the instructions issued, if any, by the Board in this regard.

(vi) Ordinarily the views of the assessees that the goods are rendered unfit for consumption or marketing, should be accepted and necessary permission should be granted within a period of 21 days or earlier, if possible. Where samples are drawn, such permission should be granted within 45 days.

(vii) Actual destruction of goods should be supervised by the officers according to the monetary limits specified in column (4) of the Table in para 11.1 above. The date and time for destruction should be fixed by mutual convenience of the proper officer and the assessee and it should be ensured that the same date and time are not fixed for more than one assessee. It should also be ensured that there is no inordinate delay once permission for destruction and remission is granted.

(viii) The proper officer personally supervising the destruction will check the quantity by physical verification i.e. by weight or by counting or using appropriate method in case of liquid, as the case may be, and the identity of goods by reference to relevant records and the application for destruction. The clearance of goods, within or outside the factory premises, shall be done on an invoice, indicating “nil‟ duty. The order of the proper officer permitting destruction and remission should be quoted on the invoice.

(ix) As far as possible, destruction should be made inside the factory.