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Charge excise duty on non excisable goods

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Lakhpati Patil

ICWA Final

36 Points Posted on 02 December 2011

We r a manufacturing company register in excise

we r using excisable & non excisable goods in single product production process , how we charge excise duty on sale

Eg. We r make production of (A) (Excisable) finish goods

we r using raw materila as

B (Excisable)

C(Excisable)

D(Excisable)

E(Non excisable)

F (Non excisable)

How we can charge excise duty to customer

Replies (3)

CA Unnikrishnan Nair N

Chartered Accountant

2114 Points Posted on 03 December 2011

Charge excise duty at appropriate rate on final product A on the price of goods. Take cenvat credit of duty paid on raw materials B,C,D.

HS Negi

Senior Executive- F&A

617 Points Posted on 03 December 2011

Dear Sir,

Cenvat credit material B,C,D is available to you as per Rule 3,4 of CCR, 2004.

Regards

HS Negi.

CA Prabhat Gupta

Manager (Indirect Taxes)

644 Points Posted on 05 December 2011

Dear Mr. Patil,

I Agree with Mr. Nair & Mr. Negi.

Excise duty to be paid on final Product has no direct relation with inputs used in manufacture of such final products. Manufacturer is required to pay excise duty on final product at the rate specified in Central Excise Tariff Act, subject to any Exemption notification availed.

Moreover, Credit of duty paid on inputs, as defined in the act, used in the manufacture of dutiable products is also available. Except where duty is paid at concessional rates under some notification.