Credit or Refund on Packing Material

This query is : Resolved

Harshal Chaubal (Querist)
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31 December 2008 Currently, I m in an Audit of a Dairy industry

here the normal practise is, we sell a Product to some branded companies after manufacturing at our plant. we procure a packing material for those product(Butter,Ghee,Cheese etc.)

What are the Excise and Custom duty implications WRT output liability and CENVAT Credit? (Also provide me the related Notifications and Circulars for these purpose)

Rajesh Kumar

Rajesh Kumar (Expert)
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10 January 2009 Normally these products do not attract Central Excise duty, and hence cenvat credit is not avaiable on inputs. The duty paid on inputs and packing material, as it is not creditable, should be treated as expenses.