Scrapped Steel Sale Excise Duty

[george thomas]

Dear Sir

We are doing manufacturing and trading of Edible Oil .We leased out land from Chennai Port and construct Storage Tank.Now we want to sell scrapped steel to one steel company.Plz advise excise duty is applicable or not for such sale ?

AI Summary

Edible Oil Company Queries Excise Duty on Scrapped Steel Sale; Cenvat Credit Utilization Key to Tax Obligation Decision A company involved in manufacturing and trading edible oil seeks advice on whether excise duty applies to the sale of scrapped steel from a storage tank constructed on leased land at Chennai Port. Responses indicate that if the company availed Cenvat Credit on the tank, duty must be paid on the transaction value. If no credit was claimed, and the scrap was not generated during manufacturing, no duty is required. Clarification is sought on whether the steel was purchased by the company or supplied by a contractor, affecting duty obligations.