We are receiving chemicals in metal barrels after using the material, we are selling the empty drums as scrap,
Kindly clarify the following :-
1. Whether duty to be collected while clearing.
2. What is the percentage applicable.
3. We already collected 6 % for clearing in the month of January, 2017.
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No excise duty payable on empty drums / barrels please refer enclosed circular which has self Explanatory...
In our view on transaction value an amount @ 6% under Rule 6 of the CENVAT credit Rules, 2004 needs to be paid as there was a change in 2015 Budget.
M/s. YAGAY AND SUN,. Dear Sirs, Wlii you PL be oblige me by mentioning specific provision of Rule 6 of Credit Rules, which requires reversal or payment. Really I could not trace out. Thanks & Regards
Please refer Explanation 1 of Rule 6(1) of the CENVAT credit Rules 2004 which was inserted vide Notifcation No. 6/2015-C.E. dated 01-03-2015 and it enumerates that for the purpose of this rule, exempted goods or final products as defined in clauses d and h of rule 2 shall include non-excisable goods cleared for a consideration from the factory.
This is just for your kind information and records.
YAGAY and SUN
M/S. YAGAY AND SUN,. Dear Sirs, Thanks a lot for clarifying and devoting your precious time for me. However, the issue requires further x-ray.
Sh.Ganeshan Subramanian Ji,
After analyzing Board's Circular dated 6.6.2003 viz-a-viz Rule 6(1) of Cenvat Credit Rules,2004 as amended in the year 2015 and Rule 2 (d) & (h) of Cenvat Credit Rules, 2004, I go with reply dated 13.2.2017 of Sh.Mukund Thakkar, Sir.
No excise duty payable. Thanks Sri Kasturi Sir for clearing the air.
Revenue Department has issued SCN on such matters under amended Rule 6. Even Top Law firms have the same view after the amended Rule 6.
In my view such SCN would be termed as 'Lame' SCN.
Dear Querist,. Even top law firms are not guarantee of quality. During my tenure in adjudication, I have seen serious mistakes in the replies to SCN filed by top law firms.
However, the success rate in 70% for the lawyers and 30% for department and where the matters were pending for almost for 15% for unknown reasons, the revenue department had withdrawn all such matters in the line of Ease of Doing Business in India.
I have read somewhere success rate for the department is 5% only.
This 5% success rate of the Revenue Department seems good for our fraternity i.e. for Tax Consultants.
M/s.YAGAY AND SUN,
Yes Sir. I agree with you in toto.
I agreed with the views of SMukund Thakkar and Shri. Kasturi Sethi Ji, for the simple reason over and above their views that Provisions of Rule 6 of CCR,2004 wiil be applicable for only to the manufactured goods and not for the drums since they are manufactured by the input supplier and the value of which already included in the assessable value on which duty was padi by the input supplier/manufacturer. The question of non excisible goods as per the proviso inserted in 2015 according to me has no applicatin in this case.