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TMI Blograte of duty for empty metal drumsX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir We are receiving chemicals in metal barrels after using the material, we are selling the empty drums as scrap, Kindly clarify the following :- 1. Whether duty to be collected while clearing. 2. What is the percentage applicable. 3. We already collected 6 % for clearing in the month of January, 2017. - Reply By MUKUND THAKKAR - The Reply = No excise duty payable on empty drums / barrels please refer enclosed circular which has self Explanatory... Board s Circular No. 721/37/2003-CX., dated 6-6-2003 - Reply By YAGAY AND SUN - The Reply = In our view on transaction value an amount @ 6% under Rule 6 of the CENVAT credit Rules, 2004 needs to be paid a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s there was a change in 2015 Budget. - Reply By KASTURI SETHI - The Reply = M/s. YAGAY AND SUN,. Dear Sirs, Wlii you PL be oblige me by mentioning specific provision of Rule 6 of Credit Rules , which requires reversal or payment. Really I could not trace out. Thanks Regards K. L.Sethi. - Reply By YAGAY AND SUN - The Reply = Dear Sir, Please refer Explanation 1 of Rule 6(1) of the CENVAT credit Rules 2004 which was inserted vide Notifcation No. 6/2015-C.E. dated 01-03-2015 and it enumerates that for the purpose of this rule, exempted goods or final products as defined in clauses d and h of rule 2 shall include non-excisable goods cleared for a consideration from the factory. This is just for your kind information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and records. Regards, YAGAY and SUN - Reply By KASTURI SETHI - The Reply = M/S. YAGAY AND SUN,. Dear Sirs, Thanks a lot for clarifying and devoting your precious time for me. However, the issue requires further x-ray. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Subramanian Ji, After analyzing Board's Circular dated 6.6.2003 viz-a-viz Rule 6(1) of Cenvat Credit Rules,2004 as amended in the year 2015 and Rule 2 (d) (h) of Cenvat Credit Rules, 2004 , I go with reply dated 13.2.2017 of Sh.Mukund Thakkar, Sir. - Reply By Ganeshan Kalyani - The Reply = No excise duty payable. Thanks Sri Kasturi Sir for clearing the air. - Reply By YAGAY AND SUN - The Reply = Revenue Department has issued SCN on such matt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers under amended Rule 6 . Even Top Law firms have the same view after the amended Rule 6. - Reply By KASTURI SETHI - The Reply = Dear Sirs, In my view such SCN would be termed as 'Lame ' SCN. - Reply By KASTURI SETHI - The Reply = Dear Querist,. Even top law firms are not guarantee of quality. During my tenure in adjudication, I have seen serious mistakes in the replies to SCN filed by top law firms. - Reply By YAGAY AND SUN - The Reply = However, the success rate in 70% for the lawyers and 30% for department and where the matters were pending for almost for 15% for unknown reasons, the revenue department had withdrawn all such matters in the line of Ease of Doing Business in India. - Reply By KASTURI SETHI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = Dear Sirs, I have read somewhere success rate for the department is 5% only. - Reply By YAGAY AND SUN - The Reply = This 5% success rate of the Revenue Department seems good for our fraternity i.e. for Tax Consultants. - Reply By KASTURI SETHI - The Reply = M/s.YAGAY AND SUN, Yes Sir. I agree with you in toto. - Reply By Suryanarayana Sathineni - The Reply = Dear Fririend, I agreed with the views of SMukund Thakkar and Shri. Kasturi Sethi Ji, for the simple reason over and above their views that Provisions of Rule 6 of CCR,2004 wiil be applicable for only to the manufactured goods and not for the drums since they are manufactured by the input supplier and the value of which al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ready included in the assessable value on which duty was padi by the input supplier/manufacturer. The question of non excisible goods as per the proviso inserted in 2015 according to me has no applicatin in this case. - Reply By ganesan subramanian - The Reply = With due respect to all I thank you for the replies made. - Reply By VaibhavKumar Jain - The Reply = In my view no Central Excise duty is payable on the sale/clearance of empty poly bags, empty corrugated box, wooden pallet scrap i.e. packing/packaging material, (in which cenvatable inputs were received and on which credit has been taken) from the factory, in terms of Board s Circular No. 721/37/2003-CX., dated 6-6-2003 based on the judgement of Supreme Court in the case of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. West Coast Industrial Gases Ltd. Vs.CCE. Reversal of credit is also not warranted as these are not non-excisable goods which requires payment of duty under Rule 6(3) of Cenvat Credit Rules . The packing scrap are excisable and duty-paid. The cost of packing material/packaging material/containers i.e. empty poly bags, empty corrugated box, wooden pallet scrap was included in the price of inputs (Cenvatable) and cenvat was availed on that value portion also. Neither CE duty is to be paid on these nor proportionate cenvat is to be reversed at the time of clearance/sale of these from the factory in terms of above circular which still holds good. Section 2(d) o f the CEA defines excisable goods which means goods specified in [[t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he First Schedule and the Second Schedule ] of the Central Excise Tariff Act , which are subject to a duty of excise and includes salt; irrespective of the fact that whether CE duty is chargeable NIL by virtue of tariff rate or through any notification . Non-excisable goods are those which are not specified in the First Schedule and Second Schedule of the Central Tariff . Since the said goods i.e. empty poly bags, empty corrugated box, wooden pallet scrap i.e. packing/packaging material are NOT non-excisable goods, these do not fall in the definition of 'exempted goods' and thus payment of an amount equal to 6% of the value of exempted goods is not required under Rule 6(3) (1) as amended vide notification 06/2015 dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 1 st March 2015 . - rate of duty for empty metal drums - Query Started By: - ganesan subramanian Dated:- 13-2-2017 Central Excise - Got 17 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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