Scrap for Corregated shipper

[Pradip Sirsat]

Dear Team,

this is for your information, we are using corrugate shipper for packing our finished goods product

now the question,can we pay excise duty while the same cleared as scrap.

so please give your opinion, on priority. we are clearing damage or old which is not fit to use corregated shipper as scrap without payment of duty.

also, please provide supporting rule or cases.

Thanks & regards,

Pradip Sirsat

AI Summary

Companies Must Pay Duty When Clearing Scrap with CENVAT Credit; Consider Chartered Engineer's Certificate for Unfit Material. A company inquires about the excise duty obligations when clearing corrugated shippers as scrap. They have been using these shippers for packing finished goods and have availed CENVAT credit. The discussion reveals that if CENVAT credit is taken, duty must be paid upon clearing the material as scrap. Sanjay Suryawanshi advises obtaining a Chartered Engineer's certificate if the material is unfit for use. Mahir S. and YAGAY and SUN emphasize the necessity of reversing the CENVAT credit and paying any applicable interest and penalties, as per audit requirements.