Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post an Article
Post a New Article
Title :
0/200 char
Description :
Max 0 char
Category :
Co Author :

In case of Co-Author, You may provide Username as per TMI records

Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Articles

Back

All Articles

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
- 0 - Views

No Excise Duty or Reversal of Cenvat Credit on Removal of Empty packaging

Date 06 Aug 2022
Written By
No Excise Duty on Removal of Empty Packaging Materials; Rule 6(3) Cenvat Credit Rules Not Applicable
The CESTAT, Ahmedabad ruled that an appellant is not liable to pay excise duty or reverse Cenvat credit on the removal of empty packaging materials related to cenvatable inputs. The case involved an appeal against a decision demanding payment under Rule 6(3) of the Cenvat Credit Rules, 2004, for clearing empty packaging drums. The tribunal referenced a previous judgment, emphasizing that such packaging materials are not generated during the manufacturing process and are therefore non-excisable. Consequently, the tribunal set aside the order demanding payment, affirming that no liability exists for clearing empty packaging. - (AI Summary)

The CESTAT, Ahmedabad in the matter of CADILA HEALTHCARE LTD VERSUS C.C.E. & S.T. -VADODARA-I [2022 (6) TMI 1177 - CESTAT AHMEDABAD] has held that assessee is not liable for payment of either excise duty or cenvat credit under Rule 6(3) of the Cenvat Credit Rules, 2004 (“the Cenvat Credit Rules”) on empty packaging material of cenvatable input.

Facts:
This appeal has been filed by M/s. CADILA HEALTHCARE LTD (“the Appellant”) against the order-in-Appeal (“the impugned order”) passed by the Commissioner (Appeals), Central Excise, Customs and Service Tax, confirming the demand on clearance of the empty packaging drums by the Appellant, on the grounds of being non-excisable goods and demanding reversal in terms of rule 6(3) of the Cenvat Credit Rules.

The Appellant contented that empty packaging drums of cenvatable input is to be considered as non-excisable goods as they are not generated during the process of manufacturing and is cleared after emptying the inputs, therefore, the same is not liable for payment under Rule 6(3) of the Cenvat Credit Rules.

Issue:

  • Whether the Appellant is required to pay an amount in terms of rule 6(3) of the Cenvat Credit Rules on empty packaging drums of cenvatable input considering the same as non-excisable goods?

Held:

The CESTAT, Ahmedabad in CADILA HEALTHCARE LTD VERSUS C.C.E. & S.T. -VADODARA-I [2022 (6) TMI 1177 - CESTAT AHMEDABAD] held as follows:

Relied upon the judgement in the case of MS BANCO GASKETS I LTD Versus C.C.E. & S.T. -VADODARA-II - 2021 (8) TMI 77 - CESTAT AHMEDABAD  in which it was held that Show Case Notice was issued demanding the amount of 6% of the value of packaging material and it was nothing but an empty packaging material in which input was received by the Appellant. Therefore, it is the fact that the packaging material is not arising out of manufacture process of any final product.

  • State that, empty packaging material of cenvatable input is not liable for payment either as excise duty or as cenvat credit under Rule 6(3) of the Cenvat Credit Rules.
  • Held that, the Appellant is not liable to make any payment on clearance on empty drums and hence, the impugned order is set aside.

(Author can be reached at info@a2ztaxcorp.com)

0 answers
Sort by

Old Query - New Comments are closed.

Hide

No Replies are present for this Article

Recent Articles