sales of packing Material to local party of Raw Material Purchase or Input

[Guest]

Respected All Experts,

We are purchasing Excisable Raw Material (Input) for using in our final dutiable Product. but question is that we want to sales packing Material of our R.M. like Plastic Empty Jumbo Bag in local Market so which type of Sale Transaction will be ? and it will be Cleared without Duty and charged only Tax ?

and we are having only a excisable unit / premises ?

please suggest for it..

regards,

Manan

Ahmedabad.

[Guest]

also pls. let me know that it is called non excisable material so we have to go to opt non excisable invoice series?

and will it be treated under other sales ?

because we are using only excisable invoice series ?

thanks,

manan

[Ganeshan Kalyani]

Hi , I came similar question in this forum. The issue is 109837 dated 07.02.2016. Please go through it your query will be solved. Thanks.

[Suryanarayana Sathineni]

Dear Manan,

I understood that you are planning sell the used packing material in which you have received your dutiable Raw materials(inputs). In other words, it is a scrap and you need to sell them under a commercial invoice without payment of duty in terms of the decision in West Coast Industrial Gases wherein it was held that since the cost of the packing material is included in the input value and duty is paid on such value, again while clearing the used packing materials duty need not required to be paid.

You may take a call accordingly.

Regards

Surya

[Guest]

thank you very much for your valuable reply and i am much clear about it.....

once again thank you sir...

regards,

Manan pandya

AI Summary

Sale of used packing material: treated as scrap and may be sold without fresh excise duty, documented by commercial invoice. Where used packing material received with excisable raw materials is sold as scrap, such disposals are to be treated as sale of used packing under a commercial invoice without payment of excise duty, because the cost of packing is included in input value and duty has been discharged in the final product; a procedural query about using a non excisable invoice series was raised but not resolved.