Imported goods

[SHIVKUMAR SHARMA]

Dear Experts

We are of the manufacturer of Exciseable goods ,Due to beak down of our plant we are having shortage the finished goods & we are plan to import the same goods from overseas supplier & to be sale the same goods in domestic market after converted from big packing to small packing.we can do this type of transaction as a manufacturer ? please quote Notification/circular/case law etc.

How much amount of duty we have to paid ?

As the same is as such sale ?

we treated as manufacturer or not as we converted only big packing to small packing having our company,s trade mark.

[KASTURI SETHI]

What is commodity being manufactured with Chapter/heading ?

[SHIVKUMAR SHARMA]

CETSH NO.29252990 RUBBER CHEMICAL

[Rajagopalan Ranganathan]

Sir,

As per Chapter Note No. 10 of chapter 29 of First Schedule of Central Excise Tariff Act. 1985 " 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'".

In view of the above repacking of imported materials from bulk pack to retails packs amounts to manufacture and you are liable to pay cenvat duty @12.5%. The value to be adopted is the transaction value, that is the price at which such repacked materials are sold to independent buyers.

[KASTURI SETHI]

Yes. I agree with Sh.Rajagopalan Ranganathan, Sir.

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the views of Shri Rajagopalan.

AI Summary

Repacking Imported Goods from Bulk to Retail Considered Manufacturing, Cenvat Duty of 12.5% Applies per Chapter Note No. 10 A manufacturer of excisable goods inquired about the process of importing goods due to a plant breakdown and selling them domestically after repacking from large to small packages. The query sought clarification on whether this transaction qualifies as manufacturing and the applicable duties. Experts responded, citing Chapter Note No. 10 of Chapter 29 of the Central Excise Tariff Act, 1985, which states that repacking from bulk to retail amounts to manufacturing. Consequently, the manufacturer must pay a cenvat duty of 12.5% based on the transaction value. The experts unanimously agreed with this interpretation.