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)