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

Excise duty on non marketable by products: lack of consideration can remove liability, but strict invoicing and records remain required.
Non marketable by products cleared free of cost are unlikely to attract central excise if they lack consideration or marketability under the amended definition of "goods," and where ad valorem duty applies the taxable value may be nil; however, compliance requires issuing a Central Excise invoice stating "Goods cleared free of cost," obtaining a buyer's declaration of non marketability, and separately notifying invoice details and quantities to the Range office with monthly returns.