Manufacturing activity

[HIMANSHU JARIWALA]

Whether the process of lacquering and coating on duty paid Polyester, BOPP/PUC/MPET films etc. amounts to manufacture or not?

[Surender Gupta]

Merely lackuering and coating on duty paid polyster, BOPP/POC/MPET films was not amount to manufacture prior to 2008. After 2008, the same was made deemed manufacture - deemed manufcture condition is applicable to goods falling under chapter heading 3920 and 3921. See the chpater 39 under cental excise - basic excise duty

AI Summary

Deemed manufacture: lacquering and coating of certain polymer films now treated as manufacture for excise purposes.
Whether lacquering and coating of duty-paid polyester and allied films constitutes manufacture for excise purposes. Prior to the legislative change, lacquering/coating did not amount to manufacture; thereafter the activity is treated as deemed manufacture for goods under chapter heading 3920 and 3921 of chapter 39, attracting basic excise duty.