Excise duty applicability on packaging and forwarding charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2012 We are a manufacturing company paying duty on excisable machinery ,in our invoice we are adding packaging and forwarding charges but paying duty excluding pack and forwarding.

Now the central excise demanding duty on packaging and forwarding charges with reference to some circular.But we maintained that this machinery not needed packaging .Please tell the its merit of the case

U S Sharma

U S Sharma (Expert)
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08 August 2012 as the machine was sold with packing, duty is payable on gross assessable value, otherwise you had to make debit notes for packing not to make invoice for the same,

in case you had despatched machine without packing and packing got done by customer after taking delivery from you then you are not liable.

department is right as you have sold the goods including packing, so the assessable value got increased with the packing cost.

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