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TMI BlogMaterial Purchase Under CT -3X X X X Extracts X X X X X X X X Extracts X X X X ..... Respected Sir / Madam we are 100 % EOU We purchase Material against CT 3 My Querry is 1.Purchasing Material is IPA ,Central Excise Tariff No is - 29051220 Material received against CT -3 , 200 ltrs Drum 1 Drum Contains 200 Liters IPA WE USE IPA THE PACKING MATERIAL IS DRUM CAN WE SALE DRUM WITH THE HELP OF CIRCULAR.NO 721/37/2003 DTD.06.06.2003. THANKS REGARDS GORAKHNAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... H KHARADE - Reply By Rajagopalan Ranganathan - The Reply = Sir, What is your doubt? The circular has clearly stated that - The Apex Court has held that no duty could be demanded on the containers used for the packing of inputs, on which credit has been taken when cleared form the factory of the manufacturer availing credit as these containers could not be treated as scrap on wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ste arising out of the manufacturing process. Similarly, reversal of credit either on proportionate basis or otherwise is also not required as the utilization of input on which credit has been taken is not in dispute. Accordingly, it is clarified that no duty shall be payable and no reversal of credit is also warranted on waste package /containers used for packing inputs, on which cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit has been taken, when cleared from the factory of the manufacturer availing Modvat/CENVAT credit. Therefore you can sell the empty drums without payment of duty/reversal of credit in which IPA was packed after utilizing the same in the manufacture of your final products. - Reply By GORAKHNATH KHARADE - The Reply = Respected sir Thank you sir you are 100 % Right. but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we are not taking a cenvat credit against IPA , WE are purchasing against CT-3, WITHOUT PAYMENT OF DUTY .we are taking credit of IPA as per circular no 76/99 customs dtd.17.11.1999 . (WE ARE 100% EOU MANUFACTURERS) as per Foreign Trade policy 2015-2020 para 6.15(d) Disposal of used packing material will be allowed on payment of duty on transaction value. what will be action take against I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PA DRUM SALE. THANKS GORAKHNATH KHARADE. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Since you are receiving IPA without payment of duty, then the question paying duty on the used packing material will be governed by the FTP 2015-20. Therefore you have to pay duty on the drums on the transaction value since the drums are not subjected to duty when you purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the IPA. Board's circular cited by me pertains to excisable goods manufactured in India and cleared on payment of duty within India and when such inputs procured in containers whose value is included in the transaction value on which excise duty is paid. - Reply By SANJAY SURYAWANSHI - The Reply = Dear Gorakhnath, If Purchase by 100% EOU against CT-3. Purchase without payment of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Duty is debited in B-17 Bond. Care of duty part care taken by B-17 Bond. Circular No. 721/37/2003 Dtd 6/6/2003 Clearly say no duty if sale Packing material of Input. Diff. is in eou we are not taken a credit in normal unit we taken a credit. My view is no need to pay duty, in case of 100% EOU sale packing material of input. Regards, Sanjay V.S. - Material Purchase Under CT -3 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Query Started By: - GORAKHNATH KHARADE Dated:- 27-6-2015 Central Excise - Got 4 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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