Query in excise-please help

934 views 6 replies

Guest

Hi all

I need help here

Excise is levied on production and not sales...

My query is related to PRODUCTION OF WASTE

I KNOW THAT WASTE IS ALSO COVERED IN THE AMBIT OF EXCISE...

SO 1. POINT OF LEVY IS PRESENT

NOW MY DOUBT IS REGARDING VALUATION OF WASTE...IF IT IS NOT SOLD THEN OBVIOUSLY WE CANNOT APPLY S.4 .i.e,transaction value SO WHAT WILL FOLLOW AS CONSEQUENCE IS VALUATION RULES....

SHOULD WE APPLY RULE 4 i.e. NEAREST TRANSACTION VAUE

I TOLD THIS TO MY VERY RESPECTED SIR

AND HE SAID THAT I WAS WRONG

NO PROBLEM WITH THAT he is afterall a very experinced man

BUT DUE TO LACK OF TIME HE WAS UNABLE TO EXPLAIN ME THE REASON....THE" WHY" PART

AND I M INCONVINCED...

SO THOUGHT I CAN TAKE HELP FROM YOU ALL

PLEASE REPLY SOON

Replies (6)

Guest

While replying please keep this in mind

That waste here is movable and marketable hence it is good

Moreover it is an excisable good i.e. given in tariff

Hence question is not about levy

IT IS ABOUT VALUATION....

RAVITOSH KUMAR

Executive

324 Points Joined January 2009

Since goods are not sold by the manufacturer, Section 4 will not apply. Rather, Rule 8 of Valuation Rule 2000 will apply, as scrap is used by manufacturer in further process, accordingly it should be valued at 110% of cost of production of scrap.

Guest

Big thanks for replying on this forum Otherwise most people on cci are always interested in participating in forums which do not in any manner relate to queries on subjects

Guest

But here waste is not used for further processing then which rule will apply ....i think rule 4 of nearest TV can be applied

Please reply

Suggestions required

RAVITOSH KUMAR

Executive

324 Points Joined January 2009

Rule 4 will not apply only for the reason that the goods being manufactured are not being sold by the manufacturer. Please read rule 4.

If the goods are not sold then what is it used for?

shivani

consultant

122 Points Joined January 2009

Dear all

Scrap having its own valuation.

Scarp or waste generated will be disposed off with payment of duty as per HS code - Duty applicable or else sent for conversion on duty paymnet & will receive back after conversion with dutiable clearence from job worker.

if it show in closing stock it will be accounted with dutiable goods with accounting treatment (passing a Journal duty payable)

For valuation it is deicided local market valuation or based on commody auctioned

if it sold and cleared on payment of duty need to apply transctional value