Dealers legal Requirment

[MUNIRAJ SRINIVASAN]

My client has import of Plastic Role under chapter 3910  after payment of customs, CVD, and SAD duty  and  cutting of plastic rolls as per customer requirement is amounting to manufacturer and he has to pay manufacturing duty or not whether dealer RC is enough

AI Summary

Does Cutting Imported Plastic Rolls Qualify as Manufacturing Under Section 2f(iii) and Schedule 3 of the Tariff Act? A client inquired about whether cutting imported plastic rolls under chapter 3910, after paying customs, CVD, and SAD duties, constitutes manufacturing, thus requiring manufacturing duty payment. Two responses were provided. One suggested reviewing Section 2f(iii) and Schedule 3 of the Tariff Act and a Supreme Court judgment. The other outlined that for a process to be considered manufacturing under excise rules, it must transform inputs into a new product with a distinct name, character, and use. Relevant case laws, including Kores India Ltd, Prachi Industries, and Arihant Tiles and Marbles, were cited to determine if the process qualifies as manufacturing.