Repacking amounts to manufacture or not

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This query is : Resolved

Monika Sharma (Querist)

19 July 2012 We are importing Digital Camera and doing some kitting activity in our Warehouse. The kitting activity are repacking ,inserting SD Card ,Camera Pouch , AV cables etc.

The MRP remains the same. The kitting products are domestically purchased.
whether this process amounts to manufacture. if yes what is the excisable value on which duty to be charged.

RENGARAJ R.K

RENGARAJ R.K (Expert)

19 July 2012 Process amounting to manufacture is a general terminology used in the central excise. But each tariff heading is different for that matter.

Kindly tell us under what tariff heading your products are excisable so that we can verify the chapter notes and reply for repacking, processing etc.,

Are you in the SSI exemption list or not?

Arun Kumar Singh

Arun Kumar Singh (Expert)

20 July 2012 Assemply of various parts and components may amount to manufacture if new product emerges, which is movable and marketable. Assembling of data processing unit from duty paid parts amounts to manufacture- Hansa Electronics v. CCE 1999(121) ELT 738(CEGAT). The turnover upto the 1.5 crore is exempt from excise duty.

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