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TMI BlogSales of Used oil from transformerX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, We are a manufacturer and we used the electrical transformer in our factory for our home use. We sale the used oil from our factory which we have used in electrical transformer. When we purchase the lubricant oil at that time we taken credit 14%. So the time of sale how much % Excise we will charge in this transaction and is this TCS will applicable on this transaction as we are sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this material as a scrap. Regards Swapneswar Muduli. - Reply By Ganeshan Kalyani - The Reply = The used lubricant oil does not loose it's character of lubricant and can be used as lubricant by the buyer hence it ia still a petroleum product and excise duty is payable at the rate at which it was purchased. Secondly if you remove used oil as scrap then 'scrap' attracts 1% TCS to be collected fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the payment to be received from buyer. - Reply By Ganeshan Kalyani - The Reply = correction ' * 'at the rate at which it was purchased' to read as "at prevailing rate". - Reply By YAGAY AND SUN - The Reply = In vikrant Tyres v CCE 2004 171 ELT 23 (CESTAT),= 2004 (7) TMI 113 - CESTAT, BANGALORE it was held that waste oil does not emerge from process of manufacture and hence is not dutiable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By raj kumar shukla - The Reply = is it duty payment or reversal of credit. - Reply By Himanshu Sharma - The Reply = Hi! The question here is ED payable on Spent Lube Answer is yes as this is generated out of manufacturing process. Secondly it is marketable and movable without loosing it identity. Question ED % Rate of duty prevailing the the time of disposal Please be noted TC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S @ 1.133% will be applicable Himanshu - Reply By Rajagopalan Ranganathan - The Reply = Sir, Electrical transformer is a capital goods. Transformer oil used in the said transformer also qualifies as capital goods as definition of 'Capital goods' contained in rule 2 (a) (A) (iii) of Cenvat Credit Rules, 2004 since transformer oil is an accessory of the transformer on the ground th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at without transformer oil the transformer cannot function. As per rule 5A (b) input service means any service, - (i) used by a provider of 26 [ output service ] for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-rule 5 (A) (b) of rule 3 of Cenvat Credit rules, 2004 , if the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value. In view of the above you have ti discharge duty on the transaction value @ 12.5%. - Reply By Ganeshan Kalyani - The Reply = Thanks for the information. - Sales of Used oil from transformer - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Query Started By: - Swapneswar muduli Dated:- 27-12-2015 Central Excise - Got 7 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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