Levy of excise duty....

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