Interemediary Goods Exempt

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biswojit (Querist)

22 July 2011 Hello experts,
Namaste!

I have a querry in the matter of exemption of intermediary goods used for manufacture of final product,(both final product and intermediary products are dutiable) which is it self dutiable but due to the exemption Notification No.50 /2003 of Central Excise , Dtd-10th June,2003(which applicabe to us/we are taking benefit) we are not paying duty.

In this case whether we shall have to pay duty on intermediary goods as per NOTIFICATION 67/95 of Central Excise.

Actually we have an unit at Himachal Pradesh notified exempted area(n.n.50/2003). where we manufacture battery which is dutiable but due to the said notification no. we are not paying duty on battery. But we used the intermediary(grey oxide)which is also dutiable goods.
1.My question is whether we have to pay duty on grey oxide or not?
2.Whether grey oxide comes in negative list of goods.
3.If grey oxide is in negative list , then whether there will be any change in the implementation of above notification.

best regards
biswojit

S.P.Mahanta

S.P.Mahanta (Expert)

13 August 2011 1)Under notification 67/95, No duty is leviable on dutiable intermediary goods manufactured & used in course of manufacture of final producton which duty is paid.

2)Notification no 50/2003, speak about goods manufactured in units established in Uttaranchal, Himachal Pradesh & exempted from duty based on CTSH no & product description.
3)No duty payable, on grey oxide as intermediary goods used in manufacture of duty paid battery.
4)Even if battery fall in the list of goods stated in the product description in not: no: 50/2003 no duty on grey oxide.

5)Inclusion of grey oxide in negative list may be verified for exemption.

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