central excise duty liability on goods removed having no market valuue.

[NEERAJ KUMAR, RANCHI]

Dear sir,

One manufacturer clears good which are his by product but the goods has no market value and the same is cleared free of cost. But the said goods is  covered under tariff and attracts duty. In such case can central excise duty be demanded on clearance of such goods.

AI Summary

Manufacturer Questions Excise Duty on Free By-Products; Rule 11 and Marketability Under 2008 Amendment Discussed A manufacturer clears by-products with no market value free of cost, raising a query about central excise duty liability. One response suggests if the duty is ad valorem, it would be nil. Another response cites Rule 11 of the Central Excise Rule, 2002, requiring an invoice for excisable goods, even if cleared free of cost, and advises documenting the lack of market value. A third response notes that since the 2008 Finance Act amendment, goods must be marketable to attract duty, implying no liability if there is no consideration or marketability.