Excise duty on naptha

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CA Nikhil Jhanwar (Querist)
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29 May 2013 The Company has purchased Naptha on duty free basis to use in manufacture of fertilizer.

But Now the Company cannot use Naptha since Government is not allowing subsidy on Naptha based Fertilizer.

My query is whether now if company removes input naptha as such, whether Excise duty is payable, whether Company can raise Excise Invoice and whether the Buyer can avail cenvat credit of duty paid on purchase of such naptha ?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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03 June 2013 In the first place as the end use condition has not been met, the duty would have to be discharged at normal rates with interest. After that it can be removed as such on payment of equivalent duty and buyer would be able to avail the credit

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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15 July 2013 India cuts excise duty on naphtha - budget
India has reduced the production tax on naphtha to 14 percent, the budget document showed on Monday.

While there was nil production tax on naphtha for fertiliser units, a tax of 16 percent was levied on the fuel for use in petrochemical and power generation.

The government has also changed excise duty structure for branded petrol and diesel from a mix of ad valorem and fixed duties to just fixed.

Branded petrol will now attract a duty of 14.50 rupees a litre and diesel will be subjected to a duty of 4.75 rupees a litre.

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