CENTRAL EXCISE LIABILITY ON PICKLES

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Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2011 PLEASE GIVE THE DETAILS REGARDING CENTRAL EXCISE LIABILITY UPON READY TO EAT FOOD PRODUCTS -PICKLES

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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25 July 2011 As per ASM Metal Reference Book, Third Edition page 65 Pickling is removing surface oxides from metals by chemical or electro chemical reaction and pickle means the chemical removal of surface oxides (scale) and other contaminants such as dirt from metal by immersion in an aqueous acid solution. Therefore it can be said that the process of pickling is only a chemical cleaning process to remove scales and dirt from the metal by immersion in chemical solution and does not result in emergence of any new commercially different commodity.

For a process to amount to manufacture under Section 2f of the Central Excise Act, 1944, the process undertaken should result in emergence of commodity having different name, character and use. Since in the present case no new product emerges as a result of the process of pickling it will not amount to manufacture.

The tribunal has in the case of Resistance Alloys [1996 (84) ELT 507 (T)] & Bothra Metal Industries [1998 (99) E.L.T. 120 (Tribunal)] held that the process of pickling being preparatory process to drawing of wire does not amount to manufacture.

FOR MORE INFO :-
Circular No. 927/17/2010-CX DTD 24.06.2010

http://www.punecenexcise.gov.in/P1_SO%204-10.pdf

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2011 Sir,
My sincere thanks for your reply

The reply was upon metals but I am looking for food products

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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29 July 2011 have you check the link:-

FOR MORE INFO :-
Circular No. 927/17/2010-CX DTD 24.06.2010

http://www.punecenexcise.gov.in/P1_SO%204-10.pdf

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