Central Excise on manufacture of PET Bottle by a Liquor Company for captive use for filling liquor

[Ramachandran and Ramachandran Associates Subramanian]

A distillery  is also manufacturing PET BOTTLES for captive use of filling liquor. The entire production is utilised captively.  Whether there is any incidence of Central Excise on manufacture of PET BOTTLES ?

[Rajesh Nathoo]

Dear Mr. Ramachandran,

It is highly contentious issue .

  As per Not. 67/1995, assessee is liable to pay Excise Duty if final product is exempted , in this case final product is  Liquor which is not  excisable as it is not included in  Central Excise Tarrif . Any excisable product can be exemted or dutiable . Liquour is out of the scope of  Central Excise Tarrif ,. hence I don,t think , assessee is not liable to pay Central Excise duty.

    Reading the law harmoniously ,  a  product can suffer either Central Excise Duty or  State Excise Duty. Cost of the bottle is included in liquor , hence bottle has already suffered  State excise duty . So assessee is not liable to pay Central Excise Duty .

[YAGAY andSUN]

The Central Excise Authorities are lawfully asking for payment of Central Excise Duties on the manufacturing and captive consumption of PET bottles.  The Central Excise and State Excise both are exclusively different levies.  Your Factory have to get registration under Central Excise Act,1944 and pay the duty accordingly.

[MUKUND THAKKAR]

I am agree with Mr. Pradeep Khatri, because  your  PET bottles  indicate the logo or  mark of your company or  products, In such situation excise duty is applicalbe on such product. state excise is one kind of  taxes not  duty (revenue) just like  vat/ cst. same duty collection has not  go in to  cetral basket.

To avoid  any litigation from central excise dept. please get registration under Central Excise Act,1944 and pay the duty accordingly.

AI Summary

Distillery Challenges Central Excise Duty on PET Bottles for Captive Use; Debates on Registration Under Excise Act, 1944. A distillery manufacturing PET bottles for captive use in filling liquor is questioning the applicability of Central Excise Duty. One party argues that since liquor is not excisable under the Central Excise Tariff, the distillery is not liable for Central Excise Duty on the bottles. Another viewpoint suggests that Central Excise Authorities require payment of duties on manufacturing and captive use, recommending registration under the Central Excise Act, 1944. A third opinion concurs, noting that the presence of company logos on bottles necessitates excise duty payment, advising registration to avoid litigation.