Subject : Payment on duty on waste package/containers used for packaging Modvatable inputs when cleared from the factory of manufacturer availing Modvat Credit – regarding
I am directed to refer to Circular No. 449/15/99-CX dated 23.2.99 on the subject mentioned above. It was clarified vide the above mentioned circular that duty should not be demanded on waste packages/containers used for packaging modvatable inputs when cleared from the factory of manufacturer availing modvat credit following the CEGAT order in case of M/s West Coast Industrial Gases Ltd. v. CCE, Cochin.
2. As the Department has filed an appeal against the above mentioned CEGAT order in the Supreme Court and the same has been admitted on 24.3.1999, it has been decided by the Board to withdraw the above mentioned circular with immediate effect. Necessary action to safeguard revenue interest may be taken.
3. A telex of even number dated 19.7.1999 communicating the withdrawal of the abovementioned circular has already been issued to all Chief Commissioners and Commissioners.