Empty Packaging Material Of Cenvatable Input Is Not Liable For Payment Of Excise Duty Or Cenvat Credit: CESTAT

The appellant/assessee submitted that the adjudicating authority and Commissioner (Appeals) confirmed the demand, considering the drum as non-excisable goods.

The lower authorities have confirmed the demand only on the ground that empty drums of cenvatable input are non-excisable goods. Therefore, the clearance there will attract a 6% reversal in terms of rule 6(3) of the Cenvat Credit Rules, 2004.

The appellant contended that the empty drums were not generated during the process of manufacture. It was cleared after emptying the inputs. Therefore, the drums were cleared and it was not liable for payment under Rule 6(3).

The issue raised was whether the appellant was required to pay an amount of 6% in terms of 6(3) of the Cenvat Credit Rules, 2004 on empty packaging drums of cenvatable input, considering it as non-excisable goods.

The court held that the appellant was not liable to make any payment on clearance on empty drums. Hence, the appeal was allowed.

Case Title: Candila Healthcare Ltd. Versus C.C.E. & S.T.-VADODARA-I

Citation: Excise Appeal No. 10100 of 2020

Dated: 24.06.2022

Counsel For Appellant: Advocate Mitesh Jain

Counsel For Respondent: Superintendent (AR) Vinod Lukose

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