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.

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

Galvanisation as manufacture: galvanizing MS/HB wire is treated as manufacture for excise, impacting plant classification.
The process of galvanisation of products within the relevant chapter is expressly treated as manufacture by the chapter note, despite an earlier administrative circular suggesting otherwise; accordingly galvanising of M S/HB wire is to be regarded as manufacture for excise purposes, and while a galvanising unit may be established alongside existing manufacturing of excisable goods, precautions are necessary where goods identity or processes are the same or similar.