Sales of Used oil from transformer

[Asked by Guest]

Dear Sir,

We are a manufacturer and we used the electrical transformer in our factory for our home use.

We sale the used oil from our factory which we have used in electrical transformer.

When we purchase the lubricant oil at that time we taken credit 14%.

So the time of sale how much % Excise we will charge in this transaction and is this TCS will applicable on this transaction as we are sale this material as a scrap.

Regards

Swapneswar Muduli.

AI Summary

Excise duty on used transformer oil may apply; classification as capital goods or scrap affects duty and TCS obligations.
Sale of used transformer oil may be taxable because the oil can remain a marketable petroleum product; contributors state excise duty is payable at the prevailing rate on disposal. Alternatively, if transformer oil is treated as capital goods and cleared as scrap, cenvat rules require payment of duty equal to that leviable on transaction value. TCS on scrap receipts is also noted as applicable.