Excise duty on Inhouse Captital Goods/Sapares

[Asked by 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

AI Summary

Exemption for in-house capital goods confirms no excise duty where tools and spares are manufactured and used within the factory.
In-house manufactured tools, spares and capital goods used within the same factory for production of dutiable final products are not liable to excise duty where they are not removed from the factory; the exemption covers captive manufacture and internal use in the manufacturing process.