Packing material included under def. of Inputs

[Asked by Guest]

Dear Sir,

Is Packing material included under definition of Inputs Rule 2(k) of Cenvat Credit rules 2002, w.e.f 01.04.2011, if yes then can we export only such packing material without payment of duty to Nepal under LUT, Please explain, Please give any references regarding this,Thanks and regards.

[Madhukar N Hiregange]

You may refer to Not42/2001 for procedure for exporting under LUT- bond. Packing material manufactured can be exported under bond.

AI Summary

Export under bond: packing material may be exported under LUT/bond following prescribed notification procedure.
The advisory notes that manufactured packing material can be exported under bond and directs reliance on the prescribed procedure for export under a Letter of Undertaking/bond as set out in the relevant export procedure notification.