Manufacturing of Tools for Captive Consumption

This query is : Resolved

satishkumar (Querist)
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25 July 2009 We are engaged in Excavation work.

We are processed on steel material and manufacture some tools for our excavator.

Is the processing work becomes manufacture for excise duty?

Rajesh Kumar

Rajesh Kumar (Expert)
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27 July 2009 It depends on the process undertaken by you. Yes, conversion of steel into tools amounts to manufacture and liable for Central Excise duty.
The other issue is exemption notification on captive use. Look at the notification, and if you are fulfilling the requirements, exemption is available.