Manufacturer of drainage pipe

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2011 Dear sir / Medam,
Please give me ans. that, we are Manufacturer of Drainage/water pipe of cement & we take cement from outside (i.e we only made cement concrete drainage pipe).so We covered under excise act or not? If Covered than what section or notification applied,what rate is applied? & what examption applied?
Please give in details..........

thanks.........

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

29 December 2011 if cement is utilised in manufacturing process you are admissiable for registration in excise:

The rate structure applicable to Portland cement falling under heading no.252329 has been revised. Cement manufactured by units other than mini-cement plants and cleared in a packaged form was chargeable to Central Excise duty either at specific rates or ad valorem rates depending on the retail sale price per 50 kg bag. The ad valorem rate was applicable to the retail sale price. Although the price slabs are being retained, the rates of duty are being converted to mixed rates i.e. ad valorem + specific rates along with some reduction. For the purpose of the ad valorem component, the value would no longer be the retail sale price but the transaction value determined under section 4 of the Central Excise Act, 1944. Similarly, rates of duty applicable to cement manufactured by mini-cement plants have been revised from specific rates to either ad valorem or ad valorem+ specific rates with some reduction.

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