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Excise on scrape sale

CA,CS Mehul Bhanawat (Job) (204 Points)

10 December 2012

Q. Whether cement manufacturing company is liable for levy of excise duty on sale of scap?

1. Brass scrap.

2. Copper Scrap.

3 Scrap TMT tor steel, TMT for steel.

4. used wooden & steel.

Please provide your opinion on light of this issue with the help of case laws or notification if any.?

As company is deducting TCS on such sale.

Thanks in adv................

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4 Replies

Rakshit (practising) (338 Points)
Replied 10 December 2012

TCS is related to Income Tax. Excise duty on scrap is leviable only when it has arisen from cenvated materials or during the manufactre of related metal products.

Raksh*t advrcverma @ gmail.com

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CA,CS Mehul Bhanawat (Job) (204 Points)
Replied 10 December 2012

Originally posted by : CS Mehul Bhanawat CA-FINAL
	Q. Whether cement manufacturing company is liable for levy of excise duty on sale of scap? 1. Brass scrap. 2. Copper Scrap. 3 Scrap TMT tor steel, TMT for steel. 4. used wooden & steel. Please provide your opinion on light of this issue with the help of case laws or notification if any.? As company is deducting TCS on such sale. Thanks in adv................

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 12 December 2012

as you have already cleared that the company is manufacturing cement and not these items, so either these are capital goods with cenvat creait taken or others ( including capital goods without cenvat credit)

only in case if cenvat credit is availed, on such goods , the duty is payable.

TCS is a different chapter, which is to be levied on scrap generated during production.

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14477 Points)
Replied 13 December 2012

Specified Goods for TCS

Alcoholic Liquor for human consumption
Tendu Leaves
Timber obtained under a forest lease
Timber obtained by any other mode
Any other forest produce not being a Timber or tendu leave:forest produce means grown spontaneously,though a latter stage human efforts are required /applied in order to extract the resultant product.TCS is applicable on Forest produce and not on agriculture produce.
Scrap:means waste and scrap from the manufacture or mechanical working of material which is definitely not usable as such because of breakage ,cutting up,wear and other reasons.

In view of this you are not lible to TCS. only sales Tax/Vat/ Excise lible on sale of capital goods./machinery parts