Puffed Rice

[Samik Chaudhuri]

Sir

Our manufacturing co is food factory. Various dutiable items are being manufactured here. Now our co purchasing Puffed Rice from the market and just packaging our label to sell the product. My query is that whether after packaging the plain Puffed rice is dutiable or not?

With thanks & regards

Samik Chaudhuri.

[Rajagopalan Ranganathan]

Sir,

In my opinion it is classifiable under sub-heading No. 1904 10 90 of first schedule to Central Excise Tariff Act, 1985. The same is chargeable @ 6% vide Sl. No. 26 of Notification No. 12/2012-CE dated 17.3.2012 as amended.

[Ganeshan Kalyani]

The relevant note of the said tariff is reproduced below for reference.

5. In relation to products of this Chapter, ¹[labelling or relabelling of containers or repacking] from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer, shall amount to 'manufacture'.

repacking amounts to manufacture and therefore attracts central excise duty.

[Ganeshan Kalyani]

Should you also need to check SSI exemption as per Notification No.8/2003 dated 01.03.2003

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is dutiable.

[Mahir S]

Yes, it is dutiable.

AI Summary

Repacking equals manufacture: packaged puffed rice treated as dutiable under central excise framework, subject to small scale exemptions. Repacking or labelling puffed rice from bulk to retail is treated as manufacture under the tariff note for food products, bringing the packaged puffed rice within central excise tariff classification and making it chargeable to central excise duty; manufacturers should also assess eligibility for small scale/SSI exemptions under the relevant notifications.