Excise duty on empty can wooden plank

[Vivek anandhan]

Dear Experts

We are the manufacturer of excisable products. We want to sale empty can and wooden plank(removed from packed input Material). This items arises from our input material.

Kindly clarify whether we need to charge Excise duty on selling of this items.

Regards

Vivekanandhan

[KASTURI SETHI]

Containers/waste package used for packing inputs cleared from manufacturer using such inputs, not dutiable and reversal of credit not warranted

Circular No. 721/37/2003-CX., dated 6-6-2003

[KASTURI SETHI]

This circular is still in force.

[Ganeshan Kalyani]

The circular cited by Sri Kasturi Sir clearly states that excise duty is not required to pay on removal of packing items received along with input purchased.

[Vivek anandhan]

Sir,

Thanks for the info

[YAGAY and SUN]

There was change in law in 2015 Budget which says if goods are not excisable then amount under Rule 6 of the CENVAT credit would be payable.

[Vivek anandhan]

Thank you, In our case all are excisable and hence Excise duty will not apply

AI Summary

Excise duty on packaging waste: generally non dutiable when arising from inputs, but cenvat reversal may apply if goods non excisable.
Containers and packaging materials removed from purchased inputs and sold by a manufacturer are generally not dutiable on removal and do not require reversal of input credit; however, if the removed items are not excisable goods a payment obligation under the Cenvat credit rules may arise instead.