TaxTMI 
TaxTMI 
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 ?
Central Excise on manufacture of PET Bottle by a Liquor Company for captive use for filling liquor
21 Feb 2014 
3 Replies 
6783 Views Central Excise liability for captive manufacture of PET bottles may require registration and duty despite state excise overlap.
Whether manufacture of PET bottles for captive use in filling liquor attracts Central Excise is disputed: one view contends that where the final product (liquor) lies outside the Central Excise Tariff the bottle's cost is subsumed within State Excise and no Central Excise duty arises; the contrary view treats Central and State excises as distinct, asserting that manufacture (including captive consumption) of PET bottles can attract Central Excise, requiring registration and duty payment, with branding on bottles cited as an indicator of dutiable manufacture. (AI Summary)
Whether manufacture of PET bottles for captive use in filling liquor attracts Central Excise is disputed: one view contends that where the final product (liquor) lies outside the Central Excise Tariff the bottle's cost is subsumed within State Excise and no Central Excise duty arises; the contrary view treats Central and State excises as distinct, asserting that manufacture (including captive consumption) of PET bottles can attract Central Excise, requiring registration and duty payment, with branding on bottles cited as an indicator of dutiable manufacture. (AI Summary)