Ajay Raghatate (Sr Executive (Excise & Accounts)) (736 Points)
22 April 2010Plz advice me,
Can we charge Excise Duty on Scrap -of Packing Materials ( Empty Container / MS Drum ),
Pls give me proper advice, with notification reference
Thanks
Ajay Raghatate
Swati
(CA)
(76 Points)
Replied 23 April 2010
Dear Mr. Ajay,
Since the scrap of packing material does not arise out of activity of manufacture, no excise duty is payable on clearance of such scrap. The question is whether credit on packing material has to be reversed. There is a judgement where the credit of packing material has been allowed.
CAclubindia
