Sale of Packing Material, Central Excise

[Mridul Sethi]

Is scrap sale of packing material is always saleable dutyfree, If yes then what we do if we purchase dutyable product...

Mridul Sethi

 

Posts / Replies

[Pradeep Khatri]

It is advisable to pay the central excise duty on sale of scrap since the definition of goods had been amended regarding marketability of such goods.

[CA Rachit Agarwal]

As the packing of goods is considered to be an activity within the definition of manfuacture and further as the packing material comes within the definition of input, hence it excise duty should be charged at the time of removal of scrap sale of packing material.