Excise Duty on Scrap

if Scrap fulfill following condition then Excise Duty will levy

1) Manufactured Commodity

2) Movable

3) Marketable Commodity

4) Find seperate heading in Tarrif List

Srap is dutiable in your case. You should pay excise duty.

Hi Friend,

If you taken CENVAT whilr purchase the Fresh goods, then you have to pay duty. Other wiase not required.

Mr. Dutta has rightly pointed out.

I am including one point with Mr. Dutta for that you are to maintain separate acoounts for Dutiable goods and Exempted goods.

Otherwise Mr Rajesh Kumar's opinion is correct.

Thanks,

S. Banerjee

Well, I donot agree with Mr. Dutta and Mr. Banerjee.

Excisability of a product doesnot depend upon the factum that whether you have taken cenvat on inputs or not. If a product is excisable, duty is to be paid irrespective of the fact whether you have taken credit or not. Thus even if you have not taken credit on the inputs, but the scrap is excisbale, duty is required to be paid.

A waste/scrap is dutiable if wo conditions are satisfied- firstly it has been generated during course of an activity amountining to manufacture and secondly it should be specifically mentioned in the tariff. If these two conditionas are satisfied, scrap is dutiable.

Respected Sir

I agree With You.

Well,  I agree with the points raised by all of you. just a clarification needed to be given on Mr. Dutta & Mr. Banerjee's point.

As per Mr. Dutta & Mr. Banarjee If the goods/ Input received on which you have availed the credit is used in production / manufacturing process. Then scarp generated out of it is taxable. If it is not your productive scrap then you need not to pay duty on it.

Well,  I agree with the points raised by all of you. just a clarification needed to be given on Mr. Dutta & Mr. Banerjee's point.

As per Mr. Dutta & Mr. Banarjee If the goods/ Input received on which you have availed the credit is used in production / manufacturing process. Then scarp generated out of it is taxable. If it is not your productive scrap then you need not to pay duty on it.

I am working in pesticide company. The scrap generated from production is sold by company. so my query is can we charge excise duty on this scrap while selling this scrap?

Thanks in advance

 I am including one point with Mr. Dutta for that you are to maintain separate acoounts for Dutiable goods and Exempted goods.

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If the pesticide are dutiable (you are paying duty), the scrap is dutiable and duty is required to paid. If however, the whole production of the unit is exempt, no duty is required to be paid on scrap.

sir,

if it is an EOU or SEZ, then what will be the liability of duty on the scrap sold....

Also if the scrap sold is in the nature of Packing materials whether excise duty has to be paid on it and wgether tcs must be collected.. (as packing material is not a manufacturing scrap i guess)..

Kindly give solutions

Hii, I am currently working in DTY, POY Plant in Jaipur. Company basically manufacturer of Recycled Plant means Draw Textured Yarn, Partially Oriented Yarn whether this commodity is excisable or not in Rajasthan and whether scrap generated from this material is excisable or not. please clear this matter its urgent for me........... can anyone help me??????????

Find out answer to below questions for your goods. If for all it is yes than duty needs to be paid.

1) Whether your goods are marketable?

2) Whether your goods are movable?

3) Whether your goods are manufacutured or produced in india?

4) Whether your goods find place in Central excise tariff Act?

Regards

Dayananda