Excise duty on used oils sold as scrap


This query is : Resolved 

(Querist)
02 September 2014 I would like to know whether excise duty is applicable if used oil are sold as scrap. Referring chapter 27 doesnt provides a clear view on whether to charge or not. But it is stated in the case between "Commissioner Of Central Excise vs Ashok Leyland Ltd. on 26 November, 2002" that excise duty need not be charged.

We are in the process of manufacturing automobile components.

Kindly clarify with any cases whether excise duty need to be charged or not.

02 September 2014 If you have taken the cenvat credit at the time of purchase of oil then you need to pay excise duty at the time of sale of scrap.

Shri Shri (Querist)
03 September 2014 Thanks.. Do you have any supporting case for it pl render


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