Whether credit of duty paid on flattened containers can be utilised for payment of duty on food/vegetable products packed in reformed containers - Admissibility regarding - Central Excise - 52/90-CX.8

Whether credit of duty paid on flattened containers can be utilised for payment of duty on food/vegetable products packed in reformed containers - Admissibility regarding Circular No. 52/90-CX.8 Dated 21-8-1990 [From F. No. 267/56/90-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Whether credit of duty paid on flattened containers can be utilised for payment of duty on food/vegetable products packed in reformed containers - Admissibility regarding. I am directed to say that doubts have been expressed whether flattened metal containers which are used for packing fruit and vegetable preparations can be regarded as packaging material in a ready to use condition for purposes of allowing Modvat credit thereon. Flattened metal containers have to be reformed and the bottom lid has to be fixed to them before they can be used for packing of fruit and vegetable preparations. The assessee contends that the conversion of flattened containers into reformed containers does not amount to manufacture and as such duty paid on flattened containers should be allowed for paying duty on the final products packed therein. This view has not found favour with the concerned collectorate. The practice prevailing in this regard in your respective Collectorate may be sent to the Board for reaching a final decision in the matter.