Excise duty on material returned for repacking

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Anil Kotian (Querist)
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06 July 2011 Dear Professionals

Please advise, whether excise duty is chargable on material returned for repacking and if yes please provide %.

Thanks

S.P.Mahanta

S.P.Mahanta (Expert)
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09 July 2011 If material returned is for primary packing, duty on value of packing to be included in AV & duty charged, if for secondary packing, no duty payable. Purpose for secondary packing to be evidenced & kept in records for future excise reference/enquiry if any.Cenvat credit on cost of packing can be adjusted against duty liability.