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Can i claim excise duty on corrugated kraft boxes

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vamshi

F&A SENIOR Executive

21 Points Posted on 11 May 2013

Hi Experts,

We are planning to start a corrugated kraft paper boxes unit. I want to know whether it comes under Manufacturing category and is it applicable for Excise duty. If it is applicable what is the percentage. Please explain me how to take cenvat credit for this category. some one told me that it is applicable only when it crosses a turnover of 1.5 crores per annum. Please give me some clarity about excise duty procedure for the above mentioned Business Unit.

Thanks In Advance.

Krishna.

Replies (1)

Amber Jain

Article Assistant

150 Points Posted on 14 May 2013

Dear Vamshi,

Yes you can claim the excise duty on corrugated kraft paper boxes as earlier there were various representations has been raised the issue on a member unit; of non eligibility of concessional Excise Duty on Corrugated Board Boxes manufactured using Corrugated Board made of Kraft Paper & Duplex Paper Board on the ground that the product cannot be classified under Tariff Heading 4819 as Duplex Board has been used & that Kraft Paper is not predominant in the total quantum of Paper & Board used therefore the demand for duty was also raised to 10% on such clearances.

Board has examined various similar issues and now has came with a clarification that the benefit of exemption will be available to goods where the goods are squarely covered by the descripttion even though the goods mentioned in the notification are not covered.

Thanks & Regards

Amber Jain