Selvaraj (Engineer) 27 November 2013

Excise duty on concrete produced in site batching plant

Dear All,

Assume that I am a civil contractor who is supposed to construct a huge residential project in which minimum 1 lac cubic metre concrete is required. In order to ease my work, I am planning to set up my own batching plant for the production of concrete required in that particular site only and I will not provide/sell the concrete to anyone else. In this case, the concrete produced from the said batching plant will attract prevailing excise duty? And what would be the impact if the said batching plant is erected on the ground out of the construction site though the concrete is produced only for the site?

Please clarify in layman's terms and let me know if further details in this regard is required.

Thanks & Regards,

R. Selvaraj

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1 Replies

Harendra Kumar (A Practicing Lawyer) 27 November 2013

Sir,

You to need the E.C.C. from Central Excise Department no. for producing the concrete and remove of said goods for further supply. In this regard duty is applicable @ 6% and various Notification regarding said material. So that plz clarify the material process for manufacturing and consumed process than actual duty to be calculated.

Thanking you