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<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> </head> <body> <div style="font-family:Verdana, Geneva, sans-serif; font-size:12px; text-align:justify"> <table width="800" border="0" style="border:1px solid #ccc;padding:5px;" align="center" cellpadding="6" cellspacing="0"> <tr> <td align="left" valign="top"> <br /> Customs, Excise and Service Tax Appellate Tribunal <br /><br /> Empty packaging material of cenvatable input is not liable for payment either as excise duty or as cenvat credit<br /><br /> MANU/CS/0144/2022 - (24 Jun 2022)<br /><br /> </td> </tr> <tr> <td align="left" valign="top">Cadila Healthcare Ltd. Vs. C.C.E. & S.T.-Vadodara-I</td> </tr> <tr> <td align="left" valign="top" style="background-color:#FDEDCE"><strong>The issue involved in the present case is that whether the Appellant is 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 the same as non excisable goods. <br><br> The Appellant submits that, the adjudicating authority and Commissioner (Appeals) confirmed the demand considering the drum as non excisable goods. He further submits that the empty drums are not generated during the process of manufacture it is cleared after emptying the inputs therefore, the drums are cleared as such and the same is not liable for payment under Rule 6(3) of Rules. <br><br> The lower authorities have confirmed the demand only on the ground that empty drums of cenvatable input is a non excisable goods and therefore, the clearance there of will attract 6% reversal in terms of Rule 6(3) of Cenvat Credit Rules, 2004. <br><br> An identical case has been considered by the Hon‟ble Supreme Court in the case of WEST COAST INDUSTRIAL GASES LTD. wherein, it is held that, the empty packaging material wherein, the input was received, the removal of the same will not attract any duty. Empty packaging material of cenvatable input is not liable for payment either as excise duty or as cenvat credit under Rule 6(3) of Rules, 2004. <br><br> The Appellant is not liable to make any payment on clearance on empty drums. Hence, the impugned order is set aside. Appeal allowed.</strong></td> </tr> <tr> <td align="left" valign="top" ><strong></strong></td> </tr> <tr> <td align="left" valign="top" ><strong>Tags : Cenvatable input, Payment, Liability</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <!--<td><strong>Source : <a target="_new" href="http://www.manupatrafast.com/">newsroom.manupatra.com</a></strong></td>--> <td align="left" valign="top"><strong>Source : newsroom.manupatra.com</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <td align="left" valign="top">Regards</td> </tr> <tr> <td align="left" valign="top">Team Manupatra</td> </tr> <tr> <td align="left" valign="top"> </td> </tr> </table> </div> </body> </html>