Excise Duty on Waste and Scrap

Excise duty is charged on waste or scrap if all the following conditions are satisfied

  • They arise during manufacture
  • They are marketable
  • They are mentioned in CETA
  • They are movable

Example

While making aluminum, aluminum dross is also produced as scrap

It is an excisable goods as it arises during manufacture and is movable, marketable and mentioned in CETA

  Excise Duty on Waste and Scrap - Basics of Excise

Waste/Scrap on Repair of Machinery

It does not amount to manufacture, as it does not arise on manufacture of goods

  1. Indirect Tax
  2. Excise
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