Excise duty on Scrap Sale

[Asked by Guest]

Dear Experts,

we have sale scrap items like empty corrugated box, wooden pallet, Empty Tin (Talc Powder) from our factory.

As these scraps are not our process scrap. It is generate on the time of imported goods receive.

In the above case excise duty liability will attract or not ?

[MADAN RAHEJA]

Dear friend, I think, circular below will help you Circular No. 721 /37/2003-CX 6th June, 2003 F.No.267/135/96-CX.8

 

[KASTURI SETHI]

Agreed with Sh.Madan Raheja, Sir. This issue has already been discussed in detail in this forum.

[KASTURI SETHI]

In continuation of my reply, it is requested that Sh.Mahir S. an expert in this forum has nicely contributed on this issue. Please trace out that reply in this forum. (about two months back.)

AI Summary

Excise duty on scrap: applicability questioned; guidance refers to a central excise circular clarifying treatment.
Whether excise duty applies to sale of scrap items generated on receipt of imported goods (empty boxes, pallets, tins) when such scrap is not process scrap; forum replies direct the enquirer to a central excise circular and prior expert forum discussion as the relevant guidance for determining applicability.