Central Excise Duty on Waste and Scrap
DDT 2877 28 06 2016 carried a capsule Central Excise Duty on Waste and Scrap. In this regard, we received this mail from a distinguished advocate:
This is with regard to the DDT today (28th) under the caption: Central Excise Duty on Waste and Scrap:
IN a recent meeting of the Regional Advisory Committee of Hyderabad Central Excise Zone, a point was raised,
CBEC Instruction in F.No.96/85/2015-CX.I., Dated: December 07, 2015 has communicated minutes of the meeting of Chief Commissioners held on 28/29th October, 2015. One of the issues discussed at the said meeting was on the duty on waste and scrap. The conference decided that henceforth waste & scrap are to be treated as "non excisable goods". In view of this decision, Industry wants confirmation on
(a) Since waste and scrap sold are "non excisable goods", no excise duty will be payable and
(b) that for the purpose of Rule 6 (3) the value of clearances of waste and scrap will be treated as 'exempted goods".
After the issue of the clarification in the above matter, there was a CBEC circular which was referred to in the following order of the Hyderabad CESTAT M/s Gemini Edibles & Fats India Pvt. Ltd. Versus The Commissioner C.C.E & ST, Guntur - 2016-TIOL-1579-CESTAT-HYD
Extract:-
Excisability of the byproduct ‘Spent Earth' arising as a residue in the process of refining of crude palm oil -adjudicating authority confirmed demand of duty on the byproduct and interest and imposed equal penalty - On appeal, Commissioner (Appeals) rejected the appeal holding that definition of excisable goods in 2(d) of the CE Act, 1944 was amended adding an explanation that for the purposes of this clause, ‘goods' includes any article, material or substance which is capable of being bought or sold for consideration and that such goods shall be deemed to be marketable.
Held: Issue having been settled by case laws referred to in the Board circular and also the withdrawal of earlier circulars and further the clarification of Board that the revised instructions will be applicable to cases kept in call book, the present appeal is allowed, setting aside the impugned order.
Please also see Excisability of Bagasse - CBEC Clarifies - Beware there is Rule 6(3) in DDT 2832 26 04 2016