Tinting Activity - Dealer (Depot) can carry ot such activity

[Asked by Guest]

Dear Sir, We are a mfg co, we are supplying base paint to our depot registered under excise and stainer from our another factory to the same depot. Can such depot can carry out such tinting activity at depot and clear the goods to the end customer. If yes whether such depot can avail cenvat credit of base paint and as well as stainer received and pass on the same to the end customer. Or It the tinting activity which will be carried out by the depot not amts to manufacture then whether the depot can only sell goods on commercial invoice,Please explain, Please give any reference regarding this,thanks and regards.

AI Summary

Tinting of duty-paid base paint: mixing to obtain different shades does not amount to manufacture and attracts no fresh excise.
Tinting duty-paid base enamel/emulsion paint with duty-paid stainer by mixing to obtain different shades, without change in nomenclature, character, use, packing or chemical transformation, does not amount to manufacture under Section 2(f) of the Central Excise Act, 1944; where both inputs are duty-paid no fresh excise liability arises and related disputes may be settled on this basis.