CE- Process of tinting of duty paid base white, etc. paint with duty paid stainer to obtain paint of different shades, whether amounts to manufacture - Clarification regarding.

Tinting duty-paid white paint with stainer isn't 'manufacture' u/s 2(f) of Central Excise Act, 1944. No extra duty.

The circular clarifies that the process of tinting duty-paid base white paint with duty-paid stainer to produce different shades does not constitute 'manufacture' under Section 2(f) of the Central Excise Act, 1944. The Board, after consulting with Commissioners of Central Excise and reviewing relevant Supreme Court judgments, concluded that this process does not create a new product with a distinct commercial identity. Since no new commodity emerges, the resultant paint does not attract additional excise duty. Pending disputes on this matter should be resolved based on these guidelines.