Excise duty liability on empty bags,corrugated boxes & wooden scrap.

[Asked by Guest]

Dear Sir,

If we removed the scrap items like empty poly bags, empty corrugated box, wooden pallet scrap from our factory.

In the above case excise duty liability will attract or not ? As these scraps are not our process scrap.

Regards

Swapneswar Muduli.

AI Summary

Excise duty on empty packing material: classification as excisable or non-excisable determines levy and CENVAT reversal obligations.
Removal of empty packing materials and wooden scrap from a factory generally does not attract excise duty where such items are residual packing in which inputs were received and were not used in or in relation to manufacture; established precedent holds that no duty is payable and proportionate CENVAT reversal is not warranted. An amendment to the CENVAT Credit Rules treats exempted goods to include non-excisable goods cleared for consideration with invoice-based valuation, but its application depends on whether the packing material is classified as excisable or non-excisable.