Payment of excise duty on waste generated out of inputs under Modvat - Clarification regarding - Central Excise - B.22/39/86-TRU

Payment of excise duty on waste generated out of inputs under Modvat - Clarification regarding F. No. B.22/39/86-TRU Dated 5-9-1986 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Payment of excise duty on waste generated out of inputs under Modvat - Clarification regarding. The undersigned is directed to invite attention to doubts raised regarding payment of excise duty on empty containers arising from the processing of inputs (packed in containers) received under Modvat. Basically the point has been raised with regard to left-over packing materials (containers) as to whether duty would be chargeable on such containers after the inputs packed in such containers have been used in the manufacture of final products. 2. The matter has been examined, containers cannot be treated as inputs. Credit taken under Modvat is with reference to the duty on inputs and not on the containers, notwithstanding the fact that the value of the inputs may include the value of containers and the duty on the inputs may be on ad valorem basis. It is, therefore, clarified that no duty would be payable when such empty containers are cleared from the factory.