Selling of Used oil

[Tejas Gandhi]

Dear Sir,

We bought fresh oil from some vendor on excise invoice . we have taken cenvat credit on fresh oil and it is used in hydraulic system, Equipment & gear box for operation for equipment maintenance. After during this process generate used oil.

This generated used oil we want to sales to customer so that in invoice whether charged Excise duty or not ?

Kindly need your suggestion.

[Mahir S]

Yes Sir, Excise duty shall be required to be charged on the transaction value.

[Tejas Gandhi]

Sir ,Thanks for reply.

Sir, i would like to know about why excise duty charge on used oil during generated from fresh oil as below mail. because used oil are not manufacturing process . it is generated during equipment maintenance ,hydraulic system & gear box for maintain machinery .

Thanks & Regards,

Tejas Gandhi.

AI Summary

Excise duty on sale of used oil must be charged on transaction value even if generated from machinery maintenance. A purchaser took Cenvat credit on fresh oil used in machinery, which produced used oil to be sold; the decisive position stated is that excise duty is required to be charged on the transaction value when selling that used oil, treating the sale as dutiable despite the oil arising from maintenance and equipment use.