Procedure for claiming refund of exise duty paid on packing material used in non-excisable goods

[PANKAJ BAVISI]

v r an exporter of non excisable product. As per buyers requirement v need to pack goods in plastic crates which is excisable. Supplier is collecting excise from us and if we want to claim the refund of same, is it eligible for claiming refund of excise on packing material? if so what procedure i have to follow for same?

[Rama Krishana]

I think you have an option to get the duty drawback. If your product is non excisable, and u find your product is not listed in the duty drawback schedule, you can approach the department for fixation of duty drawback. On the other side, if the product is otherwise excisable but exempt by way of notification, you may avail the refund by way of cenvat credit if you are the manufacturer of the goods.

AI Summary

Excise duty refund on packing material: duty drawback option and cenvat credit where goods excisable but exempt. Exporters who pay excise on packing material for non excisable products can seek relief either by applying to the department for fixation of duty drawback when the product is not listed in drawback schedules, or, where the product is excisable but exempted by notification, by recovering the amount through cenvat credit subject to eligibility and applicable conditions.