Sale of Packing Material

[Mridul Sethi]

Is scrap sale of packing material is always saleable dutyfree, If yes then what we do if we purchase dutyable product...

Mridul Sethi

 

[YAGAY and SUN]

It is advisable to pay the central excise duty on sale of scrap since the definition of goods had been amended regarding marketability of such goods.

[CA Rachit Agarwal]

As the packing of goods is considered to be an activity within the definition of manfuacture and further as the packing material comes within the definition of input, hence it excise duty should be charged at the time of removal of scrap sale of packing material.

AI Summary

Excise duty on scrap packing material may be chargeable as removal where packing is treated as manufacture and input.
Advisory responses recommend charging central excise on sale of scrap packing material: one response relies on amendments to the definition of goods regarding marketability, while the other treats packing as manufacture and packing material as an input, concluding that excise duty is chargeable at the time of removal of the scrap.