Removal of packing material as scrap

This query is : Resolved

Nitin Kumar Mahipal (Querist)
Follow

09 March 2016 Whether Excise duty is payable on removal of packing material of input goods as scrap?

We are manufacturer of Colour Coated Profile Sheets and registered as a manufacturer in Central Excise. Our Finished product is Profile Sheets, which require Colour Coated Coils as input for manufacturing. These coils comes in packed with plain steel sheets. These plain sheets are our scrap and we want to sell this scrap. My query is whether excise duty is payable on removal of this scrap?

My view is that its non-manufactured scrap hence no excise duty is levied on it.

Nilesh

Nilesh (Expert)
Follow

10 March 2016 Yes no excise duty is payable however the same would be treated as exempted goods and hence Rule 6 of the CENVAT credit would be applicable