TaxTMI 
TaxTMI 
We are purchasing Empty barrels from a Company It has been clarified from Central Excise notification no 721/37/2003-CX dated 06/06/2003 that "Selling of Empty Packing materials are Non-Excisable" Mean while in 2008 a new Explanation has been Inserted under sec2(D) Which states "Products that are deemed Markatable" that arise in due coarse of Manufacturing Which is argued by the Company that Empty barrels are Exciseable and the referred notification is Silent Kindly provide us a case law after 2008 regarding the empty barrel issue (We have referred the Gulf oil case that the Judgement is Only provided on 2008 not the case) Please anyone clarify us with a proof or case law Kindly help
Empty Barrels Purchase
19 Aug 2014 
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Excise liability on empty barrels negated where goods are not manufactured and therefore not marketable.
Issue: whether empty barrels purchased from another entity are excisable after a 2008 Explanation deeming certain goods marketable. Respondents rely on Supreme Court precedent exempting drums/barrels cleared from factory and apply the two-component excise test: goods must be manufactured and marketable. Because the assessee does not manufacture the barrels, the manufacture requirement is unmet and excise duty is not payable; no post-2008 judgment on point was located and the 2003 departmental circular remains in force. (AI Summary)
Issue: whether empty barrels purchased from another entity are excisable after a 2008 Explanation deeming certain goods marketable. Respondents rely on Supreme Court precedent exempting drums/barrels cleared from factory and apply the two-component excise test: goods must be manufactured and marketable. Because the assessee does not manufacture the barrels, the manufacture requirement is unmet and excise duty is not payable; no post-2008 judgment on point was located and the 2003 departmental circular remains in force. (AI Summary)