Material Purchase Under CT -3

[Asked by Guest]

Respected Sir / Madam

we are 100 % EOU We purchase Material against CT 3

My Querry is

1.Purchasing Material is IPA ,Central Excise Tariff No is - 29051220

Material received against CT -3 , 200 ltrs Drum

1 Drum Contains 200 Liters IPA WE USE IPA THE PACKING MATERIAL IS DRUM

CAN WE SALE DRUM WITH THE HELP OF CIRCULAR.NO 721/37/2003 DTD.06.06.2003.

THANKS & REGARDS

GORAKHNATH KHARADE

AI Summary

Disposal of duty-free packing material may attract duty under foreign trade policy on transaction value when inputs were duty-exempt.
For 100% EOUs receiving IPA under CT-3 without payment of duty and without taking CENVAT credit, disposal of used packing material (empty drums) is governed by the Foreign Trade Policy and requires payment of duty on the transaction value. The Board circular exempting containers from duty and reversal of credit applies where inputs were procured with credit and duty paid, not to duty free CT 3 receipts; practitioners note duty may be recorded against the B 17 bond but differ on practical effect.