Set up of M S wire/HB wire galvnizing plant

[sanjeev jain]

Is galvnizing of M S Wire/HB wire a manufacturing activity If Not I am running arolling mill to manufacture tmt can I set up M S wire/HB wire galvnizing plant in my premises

[Surender Gupta]

Galvanisation does not amount to manufacture within the meaning of Section 2 (f) of the Central Excises and Salt Act, 1944 - See Circular No. 19/19/94-CX, dated 9-2-1994 - Since the same is not amount to manufacture, that can not be a ground to denial of setting up a galvanization plant in the existing premises engaged in manufacturing of excisable goods. However, if the identity of goods are same or the processes are part of same or similar activity, some precautionary measures required to be taken.

[Guest]

PLease chk with chapter notes, the process amounts to manufcaturer, hence duty would be payable tkls shankar patil 9371209751

[Surender Gupta]

Yes, you are correct and there is mistake in my submission - as per chapter note no. 4 of chapter 73, it is manufacture, which read as, "4. In relation to products of this Chapter, the process of galvanization shall amount to 'manufacture'" -

AI Summary

Galvanizing Steel Wire is Manufacturing, Subject to Excise Duty Under Chapter Note 4, Chapter 73, Central Excises Act. A discussion on a forum addressed whether galvanizing mild steel (MS) wire or high carbon (HB) wire constitutes a manufacturing activity under Indian law. An initial response indicated that galvanization does not qualify as manufacturing under Section 2(f) of the Central Excises and Salt Act, 1944, suggesting that setting up a galvanizing plant on existing premises is permissible. However, a correction was later made, citing Chapter Note 4 of Chapter 73, which states that galvanization does amount to manufacturing, thus making it subject to excise duty.