Whether production of RMC is Manufacture of Excisable goods

Dear all

Whether production of Ready-Mix Concrete (RMC) per se amounts to manufacture of Excisable goods?.

If so would it make any difference in the following situations

1. Raw materials are procured by the producer and RMC is produced by him at his plant and finished goods sent to the Client's Site

2) production is done at Clients site, Raw materials are procured by the producer

3) Raw materials are supplied by the client and RMC is produced by the producer at his plant and finished goods sent to the Client's Site?

Also please enlighten me on the service tax implications in the above 3 scenarios

 

regards

CS Saju Philip

sajuphilipcs @ yahoo.com

Replies (1)

 

• A tariff rate of 5% excise duty is being prescribed on Ready-mix concrete (RMC). However these goods 
would attract the concessional 1% duty without CENVAT credit facility.
 
https://www.udyogsoftware.com/datafiles/news_docs/Budget%2011-12%20Excise%20service%20tax%20and%20custom.pdf
 
 
 

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