Sir
we received 10 MT powder with challan of rule 4(5) (a) for Job work and the packing of the same is paper bag, We will add the water on it and mix the same at our mixer . No chemical process is there, only mixing . but due to add of water and mixing of the same ,this material become in paste ( semi Liquid) form and will pack in plastic container and after the mixing process , the weight will be 20 MT
our plastic container is excisable goods
Please advise how we will send this material to our customer
Excise Duty Not Applicable for Converting Powder to Paste; No Credit on Containers, Potential Cenvat Credit on Job Work A query was raised regarding the excise duty implications for converting 10 MT of powder into a 20 MT paste by adding water, with the paste being packed in excisable plastic containers. One response clarified that since the process involves only a physical change, it does not constitute manufacturing, thus no excise duty is applicable. Consequently, credit for duty paid on the containers cannot be availed. Another response suggested that the paste could be returned on a job work challan if the supplier is excise registered, allowing for potential cenvat credit on the containers if the customer is also excise registered. (AI Summary)
TaxTMI 
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TaxTMI 
