Conversion of scrap into ingots is manufacture; scrap removals require excise duty, ingots may return duty-free on certificate. Conversion of scrap into ingots is a complete process of manufacture and thus scrap removed from 100% EOU/EPZ units to the domestic tariff area for recycling cannot be treated as duty-free job work; such scrap must be cleared on payment of excise duty. The ingots produced on conversion, however, can be returned to the unit without payment of duty on the prescribed certificate for further use as raw material. Commissioners should re-examine and, where necessary, seek recovery of duty where duty-free permissions were improperly granted.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Conversion of scrap into ingots is manufacture; scrap removals require excise duty, ingots may return duty-free on certificate.
Conversion of scrap into ingots is a complete process of manufacture and thus scrap removed from 100% EOU/EPZ units to the domestic tariff area for recycling cannot be treated as duty-free job work; such scrap must be cleared on payment of excise duty. The ingots produced on conversion, however, can be returned to the unit without payment of duty on the prescribed certificate for further use as raw material. Commissioners should re-examine and, where necessary, seek recovery of duty where duty-free permissions were improperly granted.
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