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Final IDT - Query on Excise duty

(Guest)

Please help me out.

Good that is excisable at the time of manufacture becomes non-excisable at the time of removal of goods from warehouse.

Whether excise duty is payable?

Thanks in advance :-)

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11 Replies

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 21 July 2010

yes. excise duty is payable

CS Vijay Daxini (At Practice) (732 Points)
Replied 21 July 2010

yesn excise duty is payable as and when manufactures takes place bt relevant date for determination of tariff vvalue and rate of duty is the date of removal

(Guest)

when a good is non exciseable at the time of manufacture but at the time of removal even if it becomes excisable i read duty is not payable

then how come the above case is excisable please can u explain

CS Vijay Daxini (At Practice) (732 Points)
Replied 21 July 2010

taxableevent in case of central excose is production or manufacture.PLEASE SPEIFY THE LINES N BOOK NAME

(Guest)

Whats the rate applicable if duty is payable?

Rule 5 states the relevant date for determining the rate of duty and tariff valuation shall be the date of actual removal of goods from the factory or warehouse.

Since the good is non-exciable at the time of removal which rate applies?

Im referring Yogendra Bangar for IDT

Thanks in advance:-)

CA PuRvI M!$rA (-) (2260 Points)
Replied 22 July 2010

YES....ED IS PAYABLE

vardan sharma (Company secretary) (160 Points)
Replied 23 July 2010

A very big NO

Relevent date for determination of tariff is Date of removal

Also refer to case law shaw wallace flour mills

CA Namrata ghosh (CA) (55 Points)
Replied 27 July 2010

To be excisable goods must be excisable at the time of manufacture.Hence, duty is levied in this case. As per rule 4 & 5 of Excise Rules 2002 : Duty is payable at the time of removal at the rate applicable on the date of removal. in the given case, the goods become non- excisable i.e no rate is there for the goods on the date of removal. so in which rate we pay the duty?? so no duty is to be paid .

CS Vijay Daxini (At Practice) (732 Points)
Replied 27 July 2010

it has not been mentioned that by which way goods bcme non excisable at the time of removal means exemption or part exemption or otherwise ,otherwise will answer u r question NAMRATA GHOSH if there is exemption notifocation in force then there is no que, of paying excise duty in case of partial exemption duty is payable accordingly..........txs

regards

vijay

Namita (Owner) (38 Points)
Replied 10 September 2010

Taxable event is manufacture however date of determination of rate of duty is date of removal. Since in this case, on the date of removal it is non-excisable and hence non-dutiable, there is no question of excise duty liability

C.V.R.SARMA (SERVICE) (90 Points)
Replied 10 September 2010

Excise duty is on manufacture. However for the sake of convenience the taxable event has been shifted to ' Clearance. Notwithstanding the manufacture activity, once the goods have been become exempted under excise law at the time of clerance, then no duty is payable subject to the compliance of other cenvat credit rules provisions.