Excise duty on Inhouse Captital Goods/Sapares, Central Excise

[SNEHAL SHAH]

R/sir,We are Manufacturing of Chemical as a Finished Goods and pay duty at the time of Removal . But we have prepare in house toolsand spares with purchase of raw material excisable and Non Excisable . Can Duty liability on this toolsand spares ? Please guide in this query . Thanks Snehal Shah

Posts / Replies

[DIPAK K]

Dear snehal, These tools and spares are exempt if:-1. Manufactured within your factory. 2. Used within your factory for manufacturing of dutiable final product. Please refer Notification No. 67/1995-CE for details.

[Pradeep Khatri]

Dear Snehal,

Manufacturing of capital goods for captive use, are exempted under Notification No. 67/1995-C.E., since these goods remains in the factory itself and are not being removed.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)