Question4: If a manufacturer sold used
packing material to various customers, reversal of 6% amount of value of goods
sold required under Rule 6 of Cenvat Credit Rules, 2004. As per explanation 1 to
Rule 6(1) of the Cenvat Credit Rules 2004 inserted w.e.f . 01.03.2015, for
purpose of rule 6 of Cenvat Credit Rules, 2004, 'exempted goods' or 'final
product' shall include non-excisable goods cleared for consideration from the
factory. Please provide me guidance in this matter.
Answer: The point is not correct Rule 6 of CENVAT Credit Rule will apply
only to the cases where central excise excise duty is leviable this duty is
leviable to goods manufactured or deemed manufactured Emptying of container is
not manufacturing activity your attention is invited to the ratio of following
judgment
2003(04)LCX0049
IN THE SUPREME COURT OF INDIA
M.B. Shah and Arun Kumar, JJ.
COMMISSIONER OF CENTRAL EXCISE
Versus
WEST COAST INDUSTRIAL GASES LTD.
Summary of case Drums barrels could not be treated to be a waste arising out of
processing of the inputs for which credit has been taken Rule 57F in terms
provides for taxing of the waste arising out of manufacturing process Drums
barrels cannot be terms as waste arising out of manufacturing process No duty
leviable on such drums barrels containers cleared from factory Rule 57F not
applicable Appeal filed by the revenue rejected Paras 2 3 Crux : Drums barrels
cannot be terms as waste arising out of manufacturing process, hence, no duty
leviable. (Reply dt. 09/10/2017)