Liability of excise duty

[mohan rao]

we are suppling bought out items like spring nut,bolt and washers. these items excise duty liable or not. at present we are not collecting any excise duty ot the above item. if not necessary any case law or please give case law reference number. mohan rao

AI Summary

Excise Duty on Bought-Out Items: Separate Charges Exempt, Integral Parts Taxed on Total Value. Key: Transaction Nature A query was raised regarding the liability of excise duty on bought out items like spring nuts, bolts, and washers, which are currently not subject to excise duty collection. The response clarified that if these items are independent and charged separately, they are not subject to excise duty. However, if they are integral parts of finished goods and charged together, excise duty must be levied on the total value. The key factor is determining the nature of the transaction to assess excise duty applicability.