rate of duty for empty metal drums

[ganesan subramanian]

Sir

We are receiving chemicals in metal barrels after using the material, we are selling the empty drums as scrap,

Kindly clarify the following :-

1. Whether duty to be collected while clearing.

2. What is the percentage applicable.

3. We already collected 6 % for clearing in the month of January, 2017.

AI Summary

No excise duty on empty metal drums post-use; Rule 6 CENVAT Credit Rules 2004 amendments debated. A discussion on the excise duty applicable to empty metal drums after their use in receiving chemicals. The initial query sought clarification on whether duty should be collected upon clearing the drums and the applicable percentage. The consensus among respondents was that no excise duty is payable on such drums, referencing Board's Circular No. 721/37/2003-CX. Some participants cited Rule 6 of the CENVAT Credit Rules, 2004, suggesting a 6% payment due to amendments in 2015. However, others argued that these amendments do not apply to the drums as they are not non-excisable goods.