Duty liability on sale of used packing material
Achin Singhal
(Querist) 15 September 2013
This query is : Resolved
Dear Sir/Madam,
Please solve my question?
If a excisable unit wants to sale it's packing material (e.g. drum, canes, polybags) in which raw material has come, it is liabile to pay excise duty on such goods. In other words in which packing raw material has come after use of raw material the packing is empty than we wish to sale it, liable to pay excise duty on such packing goods.
Also please confirm that it's mandatory to intimate range which records we maintain at factory.
Await for positive reply.
ajay sethi
(Expert) 16 September 2013
contact your excise consultant .
V R SHROFF
(Expert) 16 September 2013
u need advise of Excise Consultant.
R.K Nanda
(Expert) 16 September 2013
contact tax lawyer.
Anirudh
(Expert) 16 September 2013
Excise duty is payable only on the products/articles/goods manufactured by it.
The packing materials like drums, cans, polybags etc., were not manufactured by you.
Therefore the question of payment of excise duty on them would not at all arise.
However, whenever you effect sale of the said packing materials, you are liable to pay the applicable VAT on the same.
Achin Singhal
(Querist) 17 September 2013
Thanks for reply.
Please confirm if any rule/section/notification/circular etc available for this type transaction because excise auditors put objection.
Thanks
Anirudh
(Expert) 25 September 2013
In fact you have to indicate as to on what basis the Excise Auditors are putting the objection. So that one can know their exact objection and try to give you the answer.
