Sale in Open Market

[DEEPAK SHARMA]

Dear Expert,

We are manufacturing Mobile Battery, raw material of Mobile Battery procured from outside country against Annexure-III without payment of whole of duties.

Recent budget impose excise duty on Mobile Battery and Charger @ 2% W/o CENVAT and 12.5 with CENVAT under condition No. 2 & 16 of Noti. No. 12/2012 dated 17/03/2012.

our sale of battery is in open market/replacement Mkt not to manufacturer of mobile. and we are paying Excise duty @2% on clearance. we are doing wrong or right? please advice

[Anish Goyal]

Yes, You are right.

Central Excise Duty is on manufacturing. IT has to be paid irrespective of type of buyer.

AI Summary

Excise duty liability applies to mobile battery manufacture and is payable on clearance irrespective of the buyer. Manufacturer liability for excise on mobile batteries attaches on production/clearance and must be discharged irrespective of buyer identity or sales channel; the practitioner's payment of the notified lower duty rate on clearance is a correct application of the manufacturing excise obligation while observing notification conditions on CENVAT treatment.