levy of excise duty on steel structure

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2011 We are executing contracts with oil companies which involves supply,fabrication and erection of steel structure.
we buy raw steel structure from market and supply to client at their site of work. We fabricate steel structure as per their requirement and design and erect the same at site.The structure is finally fixed and grouted to ground and nothing is moved out of site. Steel structure fabricated by us is purely for our client use and is not marketable without dismentiling and cutting to scrap.
You are requested to advise us whether it is excisable or not and why?If yes please intimate the tarrif head.

CS Bijoy

CS Bijoy (Expert)
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21 May 2011 Marketability test is important in excise without which excise duty can not be charged, but in the above question the goods can be market after cutting to scrap and it is chargeable as such and it contains in Chapter ID 72.
The rate applicable to steel is 15% export duty on different steel products in a bit to slash down the rising prices of alloy. But various steel items or/and products like bars, rods, pig iron, mild steel products are kept exempted from custom duty. It has been cut down from 5% to nil.