Captive Consumption - Doubt clarification

This query is : Resolved

satya (Querist)
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11 December 2010 Dear Sir,
We are the Mfrs and Exporters of basic chemicals. Presently we are purchasing Packing materials from outside and availing Cenvat Credit Benefit. Now we have started Packing material production unit in our plant. In this regard kindly clarify the position of Cenvat benefit of Inputs used for manufacture of packing material with in the plant. The resulting packing material is used for packing of our dutiable finished product for both Domestic & Export clearance purpose.

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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11 December 2010 Packing the final product is a part of manufacture only... But yes, if u manufacture the packing material as well, then its a completely different product on its own and on such product tax is levied at the time of transfer from one department to another...