rate of duty for empty metal drums

[Asked by Guest]

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

Excise duty on empty metal drums: administrative view denies fresh duty but amended Rule 6 has prompted departmental challenges.
No excise duty is usually payable on clearance of empty containers and packing scrap from the factory where the cost was included in assessable value and Cenvat credit taken; administrative guidance treats such clearance as not requiring duty payment or proportionate credit reversal, but the 2015 amendment to Rule 6 of the Cenvat Credit Rules has led to departmental show cause notices invoking Rule 6 for certain non-excisable/exempted goods, producing a contested position on applicability.