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TMI BlogNo Excise Duty or Reversal of Cenvat Credit on Removal of Empty packagingX X X X Extracts X X X X X X X X Extracts X X X X ..... No Excise Duty or Reversal of Cenvat Credit on Removal of Empty packaging X X X X Extracts X X X X X X X X Extracts X X X X ..... es, 2004 ("the Cenvat Credit Rules") on empty packaging material of cenvatable input. Facts: This appeal has been filed by M/s. CADILA HEALTHCARE LTD ("the Appellant") against the order-in-Appeal ("the impugned order") passed by the Commissioner (Appeals), Central Excise, Customs and Service Tax, confirming the demand on clearance of the empty packaging drums by the Appellant, on the grounds of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being non-excisable goods and demanding reversal in terms of rule 6(3) of the Cenvat Credit Rules. The Appellant contented that empty packaging drums of cenvatable input is to be considered as non-excisable goods as they are not generated during the process of manufacturing and is cleared after emptying the inputs, therefore, the same is not liable for payment under Rule 6(3) of the Cenvat Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules. Issue: * Whether the Appellant is required to pay an amount in terms of rule 6(3) of the Cenvat Credit Rules on empty packaging drums of cenvatable input considering the same as non-excisable goods? Held: The CESTAT, Ahmedabad in CADILA HEALTHCARE LTD VERSUS C.C.E. & S.T. -VADODARA-I [2022 (6) TMI 1177 - CESTAT AHMEDABAD] held as follows: Relied upon the judgement in the case of MS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BANCO GASKETS I LTD Versus C.C.E. & S.T. -VADODARA-II - 2021 (8) TMI 77 - CESTAT AHMEDABAD in which it was held that Show Case Notice was issued demanding the amount of 6% of the value of packaging material and it was nothing but an empty packaging material in which input was received by the Appellant. Therefore, it is the fact that the packaging material is not arising out of manufacture process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any final product.
* State that, empty packaging material of cenvatable input is not liable for payment either as excise duty or as cenvat credit under Rule 6(3) of the Cenvat Credit Rules.
* Held that, the Appellant is not liable to make any payment on clearance on empty drums and hence, the impugned order is set aside.
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