Scrap from fabrication & erection

This query is : Open

SWAMY KARLAPUDI (Querist)
Follow

24 December 2010
We power generation company, power exempted good, hence not taken excise registration.

we are selling scrap generated during fabrication and erection of power plant.

Is it excisable, liable to pay excise duty?

I know, that we have to pay excise duty on scrap sales in mfg. company. But here...

Please clarify sir...

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
Follow

24 December 2010 you are selling duty paid scrap, you are not liable to pay the duty. Since , in your case there is no manfacturing activity.

SWAMY KARLAPUDI

SWAMY KARLAPUDI (Querist)
Follow

25 December 2010 excellent answer from Shri CA Shailesh Kumar Bhagat ji,

So, Erection, Fabrication & Commissioning doesn't amount "Manufacturing" as per Central Excise.

Thank you sir,

Upgrade to CAclubindia Pro. Subscribe Now!