Pratik Patel (Service) (48 Points)
10 February 2010
Shikha Bajaj
(CA )
(433 Points)
Replied 10 February 2010
Acc to Excise Act, for dutiability of waste & scap, the final product must be dutiable. In ur case, since the final product is dutiable, then the waste is also dutiable. When u send the main product at the nil rate, then its waste is also to be sold by levying nil rate.
Suggestions from experts r welcome.
rgds
Shikha
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 11 February 2010
Shikha is right. No duty is required to be paid on waste. Refer to exemption notification 89/95 dated 18.05.1995.