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.

[YAGAY andSUN]

Dear S Rajiv,You can avail the CENVAT credit on packing material provided the cost of packing material should be included net of central excise duty while calculating the duty on repacked/finished goods. Further, there is also adhere with the provisions of Legal meteorology Act, 2010 read with Rules made there under for selling the spare parts.RegardsTeam YAGAYand SUN (Managementand Indirect Tax Consultants)

[S Rajiv Patro]

Thanks a lot for a quick reply.

[YAGAY andSUN]

Dear S Rajiv,

Thanks for appreciating of our efforts. We are here to help you out.

Keep in touch.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

CENVAT credit: packing material eligible when cost is included net of excise and legal metrology compliance ensured. CENVAT credit on packing materials is available where repacking of bulk-bought spare parts is treated as deemed manufacture, provided the cost of packing material is included net of central excise duty in calculating duty on the repacked or finished goods, and compliance with the Legal Metrology Act, 2010 and its rules is observed.