Medicinal and toilet preparation excise duties act

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Chinmay Kamat (Querist)
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21 August 2012 Hi,
I'm a manufacturer under the Medicinal and Toilet Preparation Excise Duties Act.

I supply empty bottles to certain job workers for printing etc. They charge me excise duty under the central excise act, 1944.

Can I claim cenvat credit on the duty?

If not, is there any way to avoid payment of the duty?

Any arrangement by which I will not be charged the central excise duty?

Kindly note that the job worker cannot avail SSI exemption because his end product bears my trade name.

U S Sharma

U S Sharma (Expert)
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21 August 2012 mere printing is not an exisable job, there must be some other reason, or may be you are under branding of some taxable brand.

send the goods under challan of 214/86 or 57(F)4, both are available at excise stationary shops. on these challans he will not charge excise.

214/86 represents goods sent by manufacturer without cenvat, while 57(f)4 represent with cenvat.

Chinmay Kamat

Chinmay Kamat (Querist)
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21 August 2012 Hi,
u/s 2(f) of CE, printing on glass bottles is manufacture (I have checked CETA for this)

under 214/86, I am ultimately liable to pay excise on the goods. secondly, I doubt if we will be eligible for it, because My final product is not dutiable under Central Excise.

I wont be able to use rule 4(5)(a) either, because I am not a manufacturer for the purpose of Cenvat Rules 2004.

With these things in mind, kindly offer your suggestions.

Thanks

Chinmay Kamat

Chinmay Kamat (Querist)
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22 August 2012 Hello..!! Can anybody help?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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29 August 2012 Dear chinmay,
you can take the cenvat credit on the basis of jobworker invoice if they will charge excise duty.

Chinmay Kamat

Chinmay Kamat (Querist)
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29 August 2012 Hello, as per rule 3 of Cenvat Rules, in order to avail CENVAT, i must first be a manufacturer or producer of excisable goods.

Rule 2(t) of CENVAT asks us to refer to the central excise act for these terms viz "manufacturer" and "excisable goods".

Clearly, I am not a manufacturer of excisable goods, bacause my products contain alcohol (which is why they are under MTPExAct in the first place).

So I feel such a manufacturer wont be able to claim CENVAT.

Pls offer any suggestions/comments. Have I made any fundamental error in the above? Experts kindly guide.

Thanks