Actual User

[DEEPAK SHARMA]

Excise Duty on Mobile Battery @ 2% Without CENVAT @ 12.5% with Cenvat

A imported input of Mobile battery like, PCB, Upper Bottom Parts, Cells, Stickers etc without paying BCD, CVD & SAD under customs (import of input on concession rate of duty) Rule 2016 eralier w.e.f. 16/03/2016. A manufactured battery in his factory. the buyer of battery is not mobile or cellular manufacturer, A sale battery in open market. what will rate of duty either 2% or 12.5%. moreover if sale to mobile or cellular manufacturer what will be rate of duty either 2% or NIL against excise (clearance of input under concessional rate of excise duty) Rules 2016.

Please provide us information

[Suryanarayana Sathineni]

Dear Friend,

First of all, one can import material under the concesional rate of duty to use such material in the intended purpose. You have not stated what is the intended purpose for which such materials were imported. Moeover, predominantly, goods will be imported/ procured locally under concessional rate of duties for use in the goods intended for export.

Unless you clarify about the intended purpose, it is difficult to give the exact reply

Best Regards

Suryanarayana

[DEEPAK SHARMA]

Sir,

manufacturer imported the parts of mobile battery under consessional rate of duty and intended to manufacturing the mobile battery in his factory (not availing the CENVAT facility on inputs, inputs services or Capital goods). but the manufacturer selling the said mobile battery in open market not to mobile manufacturer. what will be rate of duty. either 2%, 12.5% or NIL

AI Summary

Concessional import purpose determines excise duty treatment on manufactured batteries when CENVAT is not availed. The issue is whether mobile batteries made from parts imported under a concessional customs duty regime attract different excise treatment depending on (a) whether the manufacturer avails CENVAT credit and (b) whether the batteries are sold in the open market or to a mobile manufacturer, noting that concessional importation is conditional on the declared intended purpose.