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

Lacquering and coating on polyester films classified as manufacturing post-2008 under Excise headings 3920 and 3921. A query was raised regarding whether the process of lacquering and coating on duty-paid polyester and similar films constitutes manufacturing under Central Excise law. The response clarified that prior to 2008, these processes did not qualify as manufacturing. However, post-2008, they were deemed manufacturing for goods under chapter headings 3920 and 3921, as per Central Excise regulations.