Excise Duty on Waste and Scrap

Last updated at April 16, 2024 by

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

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.