Excise duty on Inhouse Captital Goods/Sapares

[Guest]

R/sir,We are Manufacturing of Chemical as a Finished Goods and pay duty at the time of Removal . But we have prepare in house toolsand spares with purchase of raw material excisable and Non Excisable . Can Duty liability on this toolsand spares ? Please guide in this query . Thanks Snehal Shah

[VINOD KUMAR]

Dear snehal, These tools and spares are exempt if:-1. Manufactured within your factory. 2. Used within your factory for manufacturing of dutiable final product. Please refer Notification No. 67/1995-CE for details.

[YAGAY andSUN]

Dear Snehal,

Manufacturing of capital goods for captive use, are exempted under Notification No. 67/1995-C.E., since these goods remains in the factory itself and are not being removed.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

In-house manufactured tools and spares used internally in a factory are exempt from excise duty under Notification No. 67/1995-CE. A discussion on a forum addresses whether excise duty applies to in-house manufactured tools and spares used in a chemical manufacturing facility. The initial query asks if duty is applicable when these items are made from both excisable and non-excisable raw materials. Two responses clarify that these tools and spares are exempt from excise duty under Notification No. 67/1995-CE, provided they are manufactured and used within the same factory for producing dutiable final products, thus not removed from the premises.