Repacking and down sizing amounts to manufacturing

[chaganti srinivas]

Big lot repacked into small packs. will repacking and down sizing amounts to manufacturing and need to pay duty as per Tariff?.

[Rama Krishana]

There are various items which are deemed as manufacture. You may find a list of deemed manufacture in the central excise manual on this site. Other than items mentioned in the chapter notes / section notes of the Central Excise Tariff Act, 1975, no other items shall be subject to manufacture merely on the basis that bulk pack has been repacked into small packs.

AI Summary

Repacking and downsizing packaging not treated as manufacture for excise unless expressly listed as deemed manufacture under tariff. Repacking or downsizing bulk lots into smaller packs does not by itself amount to manufacture for central excise. Only items expressly classified as deemed manufacture in the Central Excise Manual or in the chapter or section notes of the Central Excise Tariff are treated as manufacture for excise purposes; otherwise routine repacking remains outside manufacturing classification.