WOODEN SCRAP PURCHASE

[aftabalam ansari]

Dear Sir,

is excise duty applicable on wooden scrap? if yes then in which condition?

thanks

[Rajagopalan Ranganathan]

Sir,

Saw dust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms is classifiable under heading 4401 31 00 (wood pellets) or 4401 39 00 (others) both attracting duty @ 12.5% adv.

[Himansu Sekhar]

Actually you should ask your specific query instead of as general one. If it is asssumed to be arising out of packing materials, then there will be no dutyu. Board has clarified that clearance of packing material does not need reversal of credit. Otherwise the classification in tariff makes goods excisable. But the emergence of the goods involving a manufacturing process makes them to suffer duty. You should come out the details of the processes through which the scraps generate.

[KASTURI SETHI]

I support both experts.

AI Summary

Excise Duty on Wooden Scrap: Sawdust and Wood Waste at 12.5%, No Duty for Packing Material Scrap. A query was raised about the applicability of excise duty on wooden scrap. One response clarified that sawdust and wood waste, classified under specific tariff headings, attract a duty of 12.5%. Another response advised that if the scrap arises from packing materials, no duty is applicable, as clarified by the Board. It emphasized the importance of detailing the manufacturing process to determine excisability. A third participant supported the views of both experts.