| Date: |
23-03-1999
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| Notification No: |
Central Excise Circular No 449/1999
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding payment of duty on waste package/ containers used for packaging Modvatable inputs when cleared from the factory of manufacturer availing Modvat Credit
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Regarding payment of duty on waste package/ containers used for packaging Modvatable inputs when cleared from the factory of manufacturer availing Modvat Credit
Circular No. 449 dated 23rd March 1999
References have been received from the field formations regarding doubts on the dutiability of waste packages/containers used for packaging Modvatable inputs when cleared from the factory of manufacturer availing Modvat Credit. The doubt arose in view of conflicting judgments of CEGAT rendered in the case of M/s. West Coast Industrial Gases Ltd. v. CCE, cochin reported in 1996 (83) ELT (358 CEGAT and in the case of M/s IOL v. CCE reported in 1993 (68) ELT (624). The CEGAT judgment of M/s/ West Coast Industrial Gases Ltd. v. CCE Cochin, was recalled vide Misalliances order No. 467/98 dated 6.8.98 on Rectification of Mistake (ROM) being filed in the Southern Bench.
2. The matter has been examined by the Board. In view of the above CEGAT judgment it has been decided not to demand duty on waster packages/ containers used for packaging modvatable inputs when cleared from the factory of the manufacturer availing Modvat credit and to follow the CEGAT decisions.
3. Similar instructions were issued by the Board vide Circular No. B-22/39/86-TRU dated 5.9.86 and subsequently amended vide Circular No. B-22/39/86-TRU dated 9.12.86.
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