Excise duty on scrap sale

you have to charged excise duty on scrap sale since scrap is generate from production

also take cenvat credit for the same

If any notification is there for the same..................???

Please clarify whether you were SSI before august 11. or product was not exciable first subsequently charged to excise by excise notification.

if you were under SSI exemption then as per rule 4 of cer it will be chargeable to tax and as per transition provisions of ccr 2004 CCR will be available.

You can claim cenvat credit on the transition stock including scrap. Clearance of scrap arising from manufacture is liable to duty.

If duty has been paid on the purchase of origional input on which scrap is generated, then scap of the same is liable to be charged with excise duty and if the origional input is not covered in excise or duty not paid then no need to pay excise duty on scrap.

In some case, suppose some material contained in a smaller container then clearance of container is liable to be charged excise duty.

Regards

HS Negi.

Dear Sachin,

If excise duty is paid at the purchase of original input on which scrap is generated, then scarp of such is liable to be paid with excise duty. On the other hand, if excise duty is not paid the time of purchase, scrap of such would not be liable to paid with excise duty.

In some cases, most of input comes in very small container, excise duty is paid for such input . But clearance of such container would not come under the net of excise duty.

In your case, I understand that you have purchased the input with payment of excise duty and you have not availed the cenvat credit, which is to be availed by you. Then scrap of such is liable to be paid with excise duty and cenvat credit is available to you.

Best Regards

HS Negi

Dear Sachin,

If excise duty is paid at the purchase of original input on which scrap is generated, then scarp of such is liable to be paid with excise duty. On the other hand, if excise duty is not paid the time of purchase, scrap of such would not be liable to paid with excise duty.

In some cases, most of input comes in very small container, excise duty is paid for such input . But clearance of such container would not come under the net of excise duty.

In your case, I understand that you have purchased the input with payment of excise duty and you have not availed the cenvat credit, which is to be availed by you. Then scrap of such is liable to be paid with excise duty and cenvat credit is available to you.

Best Regards

HS Negi

Dear Sir,

scrap sale duty -12% or12.5%

Please guide us

Dear Sir 

We are availling  notification 16/2012, our manufacture is Ball and Gel pen under chapter 9608, also we are not taking any Cenvat, so could we liabile to pay excise duty on scrap sales.

thanks & regards

Sandip Choudhury

Dear Krishnana,

I am a manufacturing company, i purchased a material from manufacturer & 1st stage ED Delar. I had taken CENT VAT Credit for the same. After finishing the process of goods, some of the scrap is pending. i want to sale the scrap to others for scraping. shoul i charge the Excise Duty & VAT also. Can you answer me pls.