Liability of excise duty on fly ash

Nookala Subrahmanyam (Querist) 21 September 2013 This query is : Resolved
Please clarify whether we are liable to pay excise duty on fly ash, which is being cleaned by some one in our factory. we have entered with an agreement that there is no monitory benefit between the fly ash taking away person and our manufcturing unit. Even thought the department is insisting us to arrive the duty and pay some thing. My contention is if the principle value is zero there no question of payment of duty. This is not being generated in our factory as a intention of final product or it is not an intermediate product to send to another unti for captive consumption to follow the Rule 8 of Valuation rules 2000. After 01.03.2011 department is giving presure to pay the duty on fly ash. This fly ash is being generated in our paper manufacturing unit due to using of coal in huge quantity. we have asked them to provide the way how to calculate the duty.But they are not returned with any answer so far. But in the Final audit report they have finalized to serve the SCN.

Follow Query

Report Abuse