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
Waste/Scrap on Repair of Machinery
It does not amount to manufacture, as it does not arise on manufacture of goods