CENVAT Credit on Packing materials

[S Rajiv Patro]

Dear Sir,

My company is doing a trading activity under which we buy spares in bulk and then we segregate those spares into small packets based on customer requirement. This process is called as deemed manufacture under CE. So my question here is, can we avail CENVAT credit on packing material which we buy for repacking of spares.

AI Summary

Company Can Avail CENVAT Credit for Packing Materials in Repacking If Duty Calculation Complies with Central Excise Rules. A company engaged in trading spares in bulk seeks advice on availing CENVAT credit for packing materials used in repacking spares, a process considered deemed manufacture under Central Excise. An expert confirms that CENVAT credit is permissible if the packing material cost is included net of central excise duty in the duty calculation for repacked goods. Compliance with the Legal Metrology Act, 2010, and its rules is also necessary. The company expresses gratitude for the prompt assistance, and the consultant offers continued support.