Primary forms classification treats powders and granules as primary forms, so conversion is manufacture and allows input duty credit.

The statutory definition of manufacture includes incidental processes and those specified by chapter notes. The Chapter Note treats primary forms as including powders and granules and provides that conversion from one primary form to another amounts to manufacture; classification is therefore governed by those Chapter Notes. As Chapter 39 is within the Modvat scheme, excise duty paid on a primary form of plastics is available as credit against duty on another primary form produced therefrom. Individual commodity queries are to be decided by the jurisdictional Collector/Assistant Collector.

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