Excise duty on scrap and steel.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 Sir,

I am having a small business of scrap and new steel (steel bars)trading and have a vat no. but i dont have a excise no.

I buy the steel from the supplier and sell to end user. i am paying the vat to the supplier and collecting the vat from the coustomer. therefore i get the credit.

but my question is, i am paying the 12.5% excise on the scrap can i get the credit if i take the excise no.

Kindly explain, thanks in advance.

Regards

Junaid

Arun Kumar Singh

Arun Kumar Singh (Expert)
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25 December 2012 You can not take cenvat credit on duty paid on scrap if you have to registered with excise. After registered if you have to do any manufacturing activity and pay the duty on final product then you can take the cenvat credit on duty paid on input.