agar koi scrap generate hota hai while repairing machines aur wo scrap ko hum sell karte hai market mein toh kya uske upar excise duty charge hoga? does it amount to manufacture?? my end product is PVC PIPE....
agar koi scrap generate hota hai while repairing machines aur wo scrap ko hum sell karte hai market mein toh kya uske upar excise duty charge hoga? does it amount to manufacture?? my end product is PVC PIPE....
A waste/scrap is dutiable if two conditions are satisfied- firstly it has been generated during course of an activity amounting to manufacture and secondly it should be specifically mentioned in the tariff. If these two conditionas are satisfied, scrap is dutiable.
IF You are clearing PVC pipes by paying duty, then scrap is also dutiable. however at the time of repair, if any scrap generates, then we have to look into the facts that
1) the factory has taken cenvat credit on capital goods or not ?
2) cenvat credit has been taken or not on the goods which are being used for repair?,
duty payable here only when cenvat credit has been availed.
yes its it
ref rule3(5 A) CCR 2004
ND
explainatn part of sec 2(d) CEA 1944
you will get ur ans
R/Sir,
A work of water supply scheme for a village is alloted to our firm on teder basis.This scheme is sanctioed by Govt, of MAHARASHTRA & funds are also given by Govt.Under this tendered work the PVC are required to be purchased from private industry / manufacturar of PVC PIPES IN MAHARASHTRA.The village is near AURANGABAD,Tahasil AURANGABAD IN MAHARASHTRA.The manufacturar is applying 12.36% EXCISE DUTY.However the rates provided in the tender are WITHOUT EXCISE DUTY.While preparing the estimates for these types of works,the rates adopted by GOVT.OFFICES IS WITHOUT EXCISE DUTY CHARGES.
Pl.clarify whether 12.36% EXCISE DUTY CHARGES applied by manufacturar are valid by GOVT.RULES
CAclubindia
