excise duty on goods mfg at site

[Ramesh Patel]

We have received work order for supply and fixig of cement block for road. we are planning to mfg cement block at site. wheater site mafg goods are exempted from excise duty. What are the procedure? Is there any procedure specified in Central Excise Law. What are the compliances required to be complied to exempt from duty. Wheater we need to register site in Excise or need to give any intimation to Excie dept. If we sub let the work what will be status of sub contractor in Excise and service tax

[Sankar Bagchi]

You are bringing cement and manufacturing Blocks to be errected in your Road Project. The blocks you are manufacturing as such has marketability and can be sold independently in the market hence, blocks manufacturing are goods and excisable. Further, as you are manufacturing the goods at site seperate registration is required.

[Ramesh Patel]

Dear Shankar thansk for reply. But there is a provision in Excise as per Notification No 15/2009 sr. no. 10 granting exemption of goods manufactured at site under tarrif heading 6810. Our products fall under same category. Pls give your opinion in relation to above notification.

[Surender Gupta]

Yes, you are entitled for exemption under notification no. 5/2006 as amended by notification no. 15/2009 as long as it satisfies the conditions of actual construction at site and use at such site.

AI Summary

Site-manufactured goods exemption: manufacture and actual use at the same site may relieve excise liability if conditions are met. Goods produced at a project site are excisable if they possess independent marketability and thus require separate excise registration for the site. However, goods manufactured and actually used in construction at that same site may be exempt under the applicable site-manufacture exemption if all conditions of the notification are satisfied. Subcontracting does not alter the test: the subcontractor's tax status depends on whether the manufactured items qualify as excisable goods or meet the site-use exemption, and service tax considerations may separately apply.