Exempted Item, Central Excise

[Mridul Sethi]

An item was exempted from Excise when it was produced. When it was sentout of factory the central government withdraws the exemption. Whether excise duty will be payable on it or not?

 

Regards,

 

Mridul Sethi

Posts / Replies

[MANDAVILLI RAMAKRISHNA]

s. the point of time of taxability is not at manufacture time but at clearance point of time.

[Pradeep Khatri]

You would have to pay central excise duty on the goods (which were exempted and subsequently made dutiable) at the time of removal since excise duty is applicable on the manufacturing of goods but is being collected at the time of removal.