Job-Work for Unit situated in Excise exempted Zone

[Parivesh Goel]

We are manufacturing Brass sheets & strips (Excisable Item). We wish to know if Job-work of brass scrap, generated from excise paid finished Brass strips, can be converted to finished form without paying of excise duty if the buying unit is situated in excise exempted state such as Uttaranchal etc.

AI Summary

Brass Manufacturer Faces Excise Duty for Scrap Conversion; Exemption Limited to Handicrafts, Not Applicable in Excise-Exempt States A company manufacturing brass sheets and strips inquires about the excise duty implications of converting brass scrap into finished products when the buyer is located in an excise-exempt state like Uttaranchal. An advocate clarifies that the central excise area-based exemption does not apply to their goods or activities, meaning no exemption from excise duty is available unless the goods are brass handicrafts. Another contributor notes that while specific exemptions exist for SEZs and EOUs, the company can claim a refund or adjust the CENVAT with other taxable sales, as they are not exempt from excise duty.