CENVAT Credit on Packing materials, Central Excise

[S Rajiv Patro]

Dear Sir,

My company is doing a trading activity under which we buy spares in bulk and then we segregate those spares into small packets based on customer requirement. This process is called as deemed manufacture under CE. So my question here is, can we avail CENVAT credit on packing material which we buy for repacking of spares.

Posts / Replies

[Pradeep Khatri]

Dear S Rajiv,You can avail the CENVAT credit on packing material provided the cost of packing material should be included net of central excise duty while calculating the duty on repacked/finished goods. Further, there is also adhere with the provisions of Legal meteorology Act, 2010 read with Rules made there under for selling the spare parts.RegardsTeam YAGAYand SUN (Managementand Indirect Tax Consultants)

[S Rajiv Patro]

Thanks a lot for a quick reply.

[Pradeep Khatri]

Dear S Rajiv,

Thanks for appreciating of our efforts. We are here to help you out.

Keep in touch.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)