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. It is not manufacturing process.

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

Kindly need your suggestion.

AI Summary

Sale of Used Oil: 6% Payment Required on Sale Price Due to Non-Excisable Status Under March 2015 Notification A query was raised regarding the sale of used oil, which was initially purchased with CENVAT credit for use in equipment maintenance. The question concerned whether excise duty should be charged when selling this used oil. The response clarified that used oil, being a waste product, is not excisable or dutiable. However, due to a notification effective from March 1, 2015, non-excisable goods are considered exempted goods. Consequently, a payment of 6% of the sale price of the waste oil is required instead of the credit taken on the fresh oil.