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.

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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.