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

AI Summary

Mobile battery manufacturer confirms 2% excise duty payment on all sales post-budget changes, aligning with new regulations. A manufacturer of mobile batteries, who procures raw materials from abroad without paying full duties, inquired about the correctness of paying a 2% excise duty on batteries sold in the open market or replacement market, following recent budget changes. The budget imposed a 2% duty without CENVAT and 12.5% with CENVAT on mobile batteries and chargers. An expert confirmed that paying the 2% excise duty is correct, as it is required on manufacturing regardless of the buyer type.