Inhouse srap processing for raw material generation

hi,

There are two questions

1.

A client proposed to use scrap generated at the end of process due to product not confirming to quality requirement & in process scrap.

The Scrap will go through grinding & heating treatment within the factory it self. that will generate Raw material for producing new product.

the final product is exempt from excise.

as per notification 67/95 scrap is chargeable ?

the scrap generate get comes under heading 3915 & raw material which is proposed to be prepared out of this scrap comes under 3012 to 3014

does clint can get a benefit of this exemption notification.NTF. NO. 12/2012-CE, DT. 17/03/2012

Sl. No.

Chapter or heading or sub-heading or tariff item of the First Schedule

Descripttion of excisable goods

Rate

Condition No.

147

3901 to 3914

Plastic materials reprocessed in India out of the scrap or the waste of goods falling within Chapters 39, 54, 56, 59, 64, 84, 85, 86, 87, 90, 91, 92, 93, 94, 95 and 96
[OMITTED - Explanation.- For the removal of doubts, it is hereby clarified that nothing contained in this exemption shall apply to plastic materials reprocessed in an export-oriented undertaking and brought to any other place in India ]

Nil

-

 

2. whether CAS-4 is required?

CAS-4 of Scrap ?

CAS-4 of Raw material geting generated from Scrap?

 

Replies (2)
All come under not no 67/95 hoping even scrap to raw material is done in house as final product is exempt then raw material or scrap shall be taxable. Most probably raw material. Where as notification regarding exemption i will be unableto help on that. But if raw material is exempt by claiming an exemption scrap will be taxable. Cas 4 has to be followed for valuation.

What is the final product? What is the scrap?

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