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duty liability arise on sale of used packing material

Dear all,

can you 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.


Used packaging material, drums etc. are not liable to excise duty as these are not manufactured goods, even credit of cenvat taken thereon. CBEC Board has issued a Circular in this regard for not charging excise duty.


R C Verma





Dear Ramesh chandra verma ji,


please give that CBEC circular details.

Excise & Service Tax Consultant

If the manufacturer is not able to use inputs (on which he has availed cenvat credit) for any reason like rejection, quality problems, excess supply, change in production plan, exports etc., he can clear the input as such or after partial processing from factory after payment of an amount. You can not sale the input for trading purpose in the same premises. 




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