whther scrap sale of exepted final goods are taxable

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Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2011 there is a taxtile mfg concern and final product are exports but our scrap sale in home country are taxable or not seek to know ,but i know there is a notification of no 89/95 CE dated 18-may-1995. please give final opinion .thanks your amaresh

S.P.Mahanta

S.P.Mahanta (Expert)
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11 July 2011 Under existing rules, Cenvat credit on inputs used in manufacturing final products for Export, can be utilised in payment of duty liability on removal to DTA. However, scrap generated in course of manufacturing product of export is dutiable on removal.

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U S Sharma

U S Sharma (Expert)
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11 July 2011 "export" does not means "exempted" but its exempted by virtue of export under bond, where duty liability is discharged by way of bond, or the dury remitted is claimed as rebate,

scraps of such goods are taxable when cleared under home consumption invoice.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2011 thank you sir