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]