Excise Problem.. Pls Help

As far I remember,

Packing shall be treated as Deemed Manufacturing u/s 2(f)(ii) & (iii) if it is from bulk packing to retail packing..

except others will not amount to "manufacturing" process., packing is just a process...

However, 

the cost of packing shall be part of Transaction Values u/s 4.......

 packing for convenience does  not amount to manufacture for the purpose of Chapter Note. If the product was already marketable, any amount of treatment to enhance its marketability would not amount to manufacture.

If the product is imported as ready to market retail packs, mere affixing the stickers, containing information like names and addresses of importer, MRP etc. will not amount to manufacturer

 so we can say packing only amount to manufacture when it is done  to complete a manufactured product.because Packing is essentially a process of manufacture as normally goods can not be sold without being packed but in your case CD is already a finished product.and has been imported as a finished product and no activity has been carried out to make it finished product by Sony.

mere packing for convenience of sale or anything of already finished product does not amount to manufacture unless the product is covered by section 2(f)(iii).

@ linesh

dude yaar but cd cant be sold in loose .. it cant b sold without paccking .. so to say that cd is marketable is not true in my opinion ... will u please remove my confusion if m wrong

A process only amounts  to manufacture when its is carried on goods manufactured  by you to make those goods  marketable.

unless packing is covered by section 2(f)(iii)

and in your case you have not manufactured CD.

and further in your case its also seems to be the case of repacking.bcoz CD was already packed.and what sony did ,is repacking of a packed product.and if CD has not been specified in third schedule.therefor not amount to manufacture.

This is my understanding if i also i got wrong then plz let me know the solution also.if u come to later on by expert.

I 100% agree with manmohan.

As per Sec 2 (f) III packing or repacking of a goods for rendering the product marketable to the consumer would be deemed as a manufactured product only if the goods is specified in the third schedule. so merely packing and repacking is not sufficient to render the goods as manufactured.

Incidental or ancillary processes are those processes which are integral part of manufacturing and manufacturing is not complete unless that process is carried out, so if packing is integral part of the manufacturing process then only it will covered under term manufacture. [Breaks India vs. CCE 2007 (214) E.L.T. 380 CESTAT]

packing and repacking of goods cn b said as manufacture only when there is a new product arising or when packing makes the product complete and marketable....here CD is a complete product n packing is jus a convinience infact evn without packing cd is usable n marketable...so i think am clear......

Thanks for the answer

Thank You guys now m clear with my problem