SSI unit selling scrap

Hi ,our client has an auto ancilliary(SSI) doing job work of their client ( auto components spare parts) .The main manufacturer provide the unfinished item to the job worker  & after finishing the job the anciliary returned the same to the manufacturer. The turnover relating to job work is around 12 lacs p.a . The scrap generated are sold in the open market in cash. The SSI unit is not regd . in excise . IS SSi unit is liable to pay any excise duty on scrap sale, although turnover of scrap sale is around 5 lacs p.a? Pl any one guide me.

The limit for SSI regd is 150 lacs

Replies (2)

Is your client registered under service tax???? As he is giving service to the main manufacturing concern and billing more than 10 lacs????

Principal manufacturer must pay duty on scrap, as it appears that scrap has been generated using inputs on which cenvat has been taken.

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