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 hinges on tariff classification; packing material exemptions and manufacturing origin determine liability.
Excise duty on wooden scrap depends on tariff classification: saw dust and wood waste, including agglomerated forms like pellets, fall under headings for wood pellets or other wood waste and attract excise duty. Clearance as packing material is excluded from duty and does not require reversal of input tax credit. If the scrap results from a manufacturing process such that it is produced by manufacture, the manufacturing-origin test makes it excisable. Liability therefore turns on the process details and nature of the goods.