No excise duty on used empty containers cleared from the factory when credit on packed inputs was already taken.

Excise duty was held not payable on used empty containers of modvatable inputs cleared from the factory, and no reversal of credit was required on such waste packages or containers used for packing inputs on which credit had been taken. The Tribunal noted that the issue had already been settled by earlier Tribunal and Supreme Court proceedings, and the Board circular also clarified that no duty liability arose on clearance of these containers. In light of this settled position, the demand could not be sustained and the matter was decided in favour of the assessee.

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Issues: Whether excise duty was payable on used empty containers of modvatable inputs cleared from the factory.

Analysis: The appeal arose from a demand raised on used containers of inputs. The issue had already been considered in earlier Tribunal and Supreme Court proceedings, and the Board had also issued a circular clarifying that no duty was payable and no reversal of credit was warranted on waste packages or containers used for packing inputs on which credit had been taken when cleared from the factory. In view of this settled position, the demand could not be sustained.

Conclusion: The issue was decided against the Revenue and in favour of the assessee.

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