Dear Sir, Due to Customer specification change, one of the raw materials which we were using in the manufacturing process became obsolete. Now we are planning to clear this as scrap with applicable Excise duty as supplier is not ready to take it back. In this regard, is it necessary to add this new scrap category in the Excise registration. Or is it enough if we show this clearance in our ER1 returns.

Referring section 6 of Central excise Act and rule 9 of CE Rules, for the disposal of obsolete raw materials amendment of registration or addition of items are not required. If cenvat credit taken for the obsolete goods follow the Cenvat Credit rules for clearance and otherwise clear them as normal goods on payment of duty and show in ER1 return at appropriate places.