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This query is : Resolved

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Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2013 company A, in India, is importing one raw material and sells it to a Company B in India within the same state. Company B adds some more raw materials and makes a final product and sells the same to Company A. Then Company A inspects the final product (falling under Chapter 39) packs, labels and sells to its customers in India.
Whether the activity done by Company A amounts to manufacture ? Can it avail Cenvat credit while buying from Company B? Are there any issues ? Please respond - urgent.

Arun Kumar Singh

Arun Kumar Singh (Expert)

28 July 2013 In relation to products of heading 3920 and 3921, the process of metallization shall amount to manufacture under deemed manufacture. Duty liability will not be applicable on A. B can take the cenvat credit and they can pay excise duty. Because B is a manufacturer.

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