TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the assessee was required to maintain separate accounts and reverse or pay amount under Rule 6 in respect of used plastic crates repeatedly returned for reuse in packing dutiable and exempted products, and whether the demand could be sustained.
Analysis: The plastic crates in question were treated as durable and returnable packing materials. Credit had been availed on virgin crates when received under duty-paid invoices, and the dispute related only to crates after their first use and return to the factory for reuse. Rule 6 of the CENVAT Credit Rules contemplates maintenance of accounts for virgin inputs entering the manufacturing stream, and not for used crates already consumed once in packing. The Tribunal followed the earlier decision in the assessee's own case, which held that non-maintenance of accounts for repeatedly used crates does not attract liability under Rule 6 where accounts of new crates were maintained. That view had also been sustained by the High Court.
Conclusion: The demand was not sustainable and was set aside; the appeal was allowed in favour of the assessee.
Ratio Decidendi: Where durable and returnable packing materials are accounted for when received as virgin inputs, Rule 6 does not require separate accounting of the same materials after their first use and return for reuse, and no amount can be demanded merely for such repeated use.
TaxTMI 
TaxTMI 
