Clarification - non-excisable scrap

[Ramaiah Swamy]

After amendment to section 2(d) of central Excise Act,1944. effective May 2008 what is the position about non-excisable scrap ? Is it that duty should be paid forr whatever scrap sold be it arising during manufacguring actitiviies or dismantling etc., ? Even unserviceable scrap should also be removed only on excise duty ?

AI Summary

Clarification on Excise Duty for Scrap: Duty Depends on Finished Goods' Status Under Section 2(d) Amendment, 2008. A query was raised regarding the excise duty on non-excisable scrap following an amendment to section 2(d) of the Central Excise Act, 1944, effective May 2008. The question was whether duty should be paid on all scrap, including that from manufacturing or dismantling activities. The response clarified that the duty on scrap depends on the duty status of the finished goods. If the finished goods are exempt from duty, the scrap is also exempt. Otherwise, duty must be paid on the sale value of the scrap unless it is specifically exempted.