poojagoyal (executive) 22 April 2011

Whether excise duty is applicable on saleof manganesedioxide

I wish to know whether excise duty is applicable to sales on naturally mined manganesedioxide

in india after budget of 2011, specially if raw ore is procured excise free & then simply pulverised & then sold.

poojagoyal

more info

"""""""Kindly Clarify this as we purchase material from Govt co who are not covered under

Excise & having turnover of more than 600 to 800 crores. They also do not issue

Any excise exemption certificate . their bills & challans do not mention any excise nos

Nor any exemption gate pass is issued by them as manganesedioxide ores are natural material & we only grind or pulverize them (size reduction ) to our needs .

We do not do any refining or concentrating activity. """"""

Kindly comment & throw some light.

pooja

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1 Replies

Shayan Khan (B.com) 27 April 2011

Please note that, excise duty is not a tax on sale of goods but it is a tax on manufacture or productions of goods in india.(i.e. 150 nautical miles from the sea shore)

you need to understand more terms before getting into known that whether excised duty will be levied or not.

excise is levied subject to four Ms...

M- Manufacture: there shall be a manufacture. that means new product should come into exisatance whoch should be distict in identity and use from the inputs which has been used to manufacture such goods.

M- movable. i.e.goods can be capable of being brought to the market for sale.

M- Marketable: there shall be buyers available in the market. it means, the goods should be known in the market.

M- Mention in CETA(central excise tariff Act), the said goods should be covered under CETA. i.e. it is book contains the descripttion of goods.

If all the conditions are cumulatively satisfied then the duty of excise is levied..

Thanks & Regards