09 February 2011
Dear All expert we purchasing packing material from packing vendor with excise ,but we not taking credit of that can we send this packing material for job work for our finish product to another vendor( who make our finish product on our behalf).he will pay duty when he send finish product to us .after that we sell this finish product as duty paid material.
my query is that can we send packing material as FOC without excise ( not taking cenvet credit of that material ).
16 February 2011
The option of availing credit or not is left to you. In this case since the manufacturer is charging the duty on the finsihed product he would include the value of material sent also. Rule 10A of the valuation ruyles also maybe applicable. The same vendo/ manufacturer can avail the credit on the packing material sent if central excise duty paid document is in his favour as consignee.
CAclubindia
