TaxTMI 
TaxTMI 
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 ?
Scrapped Steel Sale Excise Duty
05 Apr 2016 
4 Replies 
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Cenvat credit reversal required when input credit taken on tanks sold as scrap; otherwise sale of dismantled scrap is non-taxable.
Excise duty on sale of tank scrap hinges on whether Cenvat Credit was availed: if credit was taken, the seller must reverse credit or pay duty on transaction value; if no credit was claimed and the scrap was not produced in the course of manufacture of the seller's product, disposal of dismantled scrap is not liable to excise. The contractual allocation of supply and construction between principal and contractor also determines which party bears any excise consequence. (AI Summary)
Excise duty on sale of tank scrap hinges on whether Cenvat Credit was availed: if credit was taken, the seller must reverse credit or pay duty on transaction value; if no credit was claimed and the scrap was not produced in the course of manufacture of the seller's product, disposal of dismantled scrap is not liable to excise. The contractual allocation of supply and construction between principal and contractor also determines which party bears any excise consequence. (AI Summary)