Zero Excise Duty on Goods Manufactured from Waste, Paring and Scrap

[Ref: Central Excise Notification No. 27 dated 24th March 2011]

Waste, scrap and parings arising in the course of manufacture of items subject to the 1% levy have been fully exempted. The benefit of this exemption is available only to units that exclusively manufacture these items. The benefit of this exemption is also available to units exclusively manufacturing mobile handsets including cellular phones.

Post- registration verification of the factory premises shall not be required for such units.

Visits to such units should not be required in the normal course. If at all the need arises, the officer visiting them should do so only with the prior authorization of the Assistant Commissioner or the Deputy Commissioner Central Excise of the jurisdictional division. The authorisation should be shown to the assessee and his signatures obtained on it at the time of the visit. These instructions may be disseminated to the field formations for strict compliance.

Facility of quarterly returns is being prescribed for these units. Notification No. 8/2011-CE (NT) dated 24th March, 2011 refers.

A simple format for this quarterly return will be notified in due course as the first return from such units will become due only in July 2011.

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts waste, parings and scrap arising in the course of manufacture of goods in respect of which the benefit of exemption under notification no. 1/2011-Central Excise dated the 1st March, 2011 or notification no. 20 /2011 –Central Excise dated the 24th March, 2011 is availed and falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from the whole of the duty of excise leviable thereon which is specified in the said Schedule :

Provided that nothing contained in this notification shall apply to waste, parings and scrap cleared from a factory in which any excisable goods, other than goods in respect of which the benefit of exemption under the said notifications is availed, are also manufactured.

[F.No. B-1/3/2011-TRU]