Excise on scrape sale

Q. Whether cement manufacturing company is liable for levy of excise duty on sale of scap?

1. Brass scrap.

2. Copper Scrap.

3 Scrap TMT tor steel, TMT for steel.

4. used wooden & steel.

Please provide your opinion on light of this issue with the help of case laws or notification if any.?

As company is deducting TCS on such sale.

Thanks in adv................

 

Replies (4)

TCS is related to Income Tax. Excise duty on scrap is leviable only when it has arisen from cenvated materials or during the manufactre of related metal products.

 

Raksh*t  advrcverma @ gmail.com

Originally posted by : CS Mehul Bhanawat CA-FINAL

Q. Whether cement manufacturing company is liable for levy of excise duty on sale of scap?

1. Brass scrap.

2. Copper Scrap.

3 Scrap TMT tor steel, TMT for steel.

4. used wooden & steel.

Please provide your opinion on light of this issue with the help of case laws or notification if any.?

As company is deducting TCS on such sale.

Thanks in adv................

 

as you have already cleared that the company is manufacturing cement and not these items, so either these are capital goods with cenvat creait taken or others ( including capital goods without cenvat credit)

only in case if cenvat credit is availed, on such goods , the duty is payable.

TCS is a different chapter, which is to be levied on scrap generated during production. 

Specified Goods for TCS
 

  1. Alcoholic Liquor for human consumption
  2. Tendu Leaves
  3. Timber obtained under a forest lease
  4. Timber obtained by any other mode
  5. Any other forest produce not being a Timber or tendu leave:forest produce means grown spontaneously,though a latter stage human efforts are required /applied in order to extract the resultant product.TCS is applicable on Forest produce and not on agriculture produce.
  6. Scrap:means waste and scrap from the manufacture or mechanical working of material which is definitely not usable as such because of breakage ,cutting up,wear and other reasons.

In view of this you are not lible to TCS. only sales Tax/Vat/ Excise lible on sale of capital goods./machinery parts

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