Glassware decorating ,whether a manufacture?

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abhishek

CA FINAL

166 Points Posted on 25 January 2011

Hi all!
Could you help me clarify my doubt stated below:
As per the decision of court in J.G. Glass Industries Ltd.case,printing and decorating of bottles was not considered to be manufacture mainly because no new product was coming to existence and that the process was not really making it purposeful,i.e the bottles could well be used as bottles without decorating.

Further the same judgement has been taken as base in Union of India & Ors. Vs. M/S Alembic Glass Indust. Ltd. & ANR. [2010] INSC 437 (6 May 2010).

So one can conclude that printing,decorating of glassware does not amount to manufacture.

But if one looks in the CETA 2009-2010,
we come across a chapter note in chapter 70 stating that "In relation to products of headings 7009, 7010, 7011, 7015, 7018 and 7020 the process
of printing, decorating or ornamenting shall amount to ‘manufacture’"

glassware bottles falls within the heading 7010.

Then in the light of this note printing,decorating of glassware becomes manufacture but this seems contradictory to the judgements passed in courts,isnt it?

Please help.

God bless

Replies (2)

U S Sharma

glidor@gmail.com

21670 Points Posted on 26 January 2011

But if one looks in the CETA 2009-2010,
we come across a chapter note in chapter 70 stating that "In relation to products of headings 7009, 7010, 7011, 7015, 7018 and 7020 the process
of printing, decorating or ornamenting shall amount to ‘manufacture’"

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all such sub headings are related to industrial inputs and usually they don't get marketed unless they got associated with any industrial accessories , but once they are branded or printed or associated with decoration they change their sub heading also, hence its called manufacture.

Arun Kumar Singh

GST Advocate

13166 Points Posted on 26 January 2011

Printing of colour and logo done on glass bottle does not amount to manufacture. It was found that even before printing glas bottle was commercial commodity and could be sold even without printing. Hence, it was held that printing of bottle with ceramic colour and decoration is not manufacture. In relation to products of heading 7009, 7010, 7011, 7015, 7018 and 7020 the process of Printing, decorating and orgamenting shall amount to manufacture.