Job-Work for Unit situated in Excise exempted Zone , Central Excise

[Parivesh Goel]

We are manufacturing Brass sheets & strips (Excisable Item). We wish to know if Job-work of brass scrap, generated from excise paid finished Brass strips, can be converted to finished form without paying of excise duty if the buying unit is situated in excise exempted state such as Uttaranchal etc.

Posts / Replies

[Alok Kumar]

Dear Mr. Parivesh Goel,

The goods which have been covered under the relevant central excise AREA BASED exemption notification does not mention the the goods / activity being presently manufactured by you or the goods on which you intend to get the job work done in the state of Uttarakahand.

Considering the same you will not get any exemption from duty of Central Excise on the said goods/ activity.(had these been brass handicrafts goods you could  get the exemption).

Alok Kumar

Advocate

[Mahaganapathi V]

Sir

There are specific exemtions to SEZ, EOUs etc and any sale to such units which are located under these areas are not liable to pay Excise duty, Sales Tax or Service Tax. These exemptions are available to those units under the act itself.

In your case you are not exempted from excise duty. However you can claim refund or adjust the cenvat with other taxable sales made to other category of purchasers.

Mahaganapathi.V