Liability of excise duty, Central Excise

[mohan rao]

we are suppling bought out items like spring nut,bolt and washers. these items excise duty liable or not. at present we are not collecting any excise duty ot the above item. if not necessary any case law or please give case law reference number. mohan rao

Posts / Replies

[Mukesh Kumar]

There are number of judgments on the issue of bought out items. Where the bought out items are independent and charged separately and not integral part of manufactured goods, the value shall not be included. On the other side, where the bought out items are integral parts of the finished goods, supplied together, charged commonly, you need to charge excise duty after including the value thereof. The important question is: what is the nature of transaction?