DEEMED MANUFACTURE

[Guest]

If we are importing video conferencing cameras and equipment from China and than put our Brand Name on it and then sale whether it amounts to manufacture under excise laws in India. If yes, what will be excise duty applicable on it.

Or Otherwise,

If we purchase from Importer (an Indian importer) video conferencing cameras and equipment and than put our Brand Name on it and then sale whether it amounts to manufacture under excise laws in India. If yes, what will be excise duty applicable on it.

 

[Guest]

Section 2(f) (iii) provides for a deeming fiction that in relation to goods specified in Third Schedule, [MRP goods] the activities of packing or repacking in a Unit container or labeling or rebelling of containersincluding the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer, shall amount to “manufacture”.

Whether goods have been imported directly or through agent / independent person does not matter.

Hence, Excise duty is applicable on MRP Less abatement.

[Vijay kumar]

If the goods procured by you conform to "Photographic (other than cinematographic) cameras" and fall under chapter heading 9006 of the Central excise tariff act, 1985, then the process adopted by you amounts to manufacture in terms of sl.no.96 of the Third Schedule to Central Excise Act, 1944. The rate of duty applicable is 12.36%. The value will be MRP based if the goods are covered under Nofn.49/2008-CE(NT). I find that these goods are covered at sl.no.102 of the said nofn. where the abatement provided is 30%. So you have to pay duty at the said rate on 70% of the MRP printed on the goods.

[YAGAY andSUN]

I am in agreement with the replies submited by the both experts.

AI Summary

Deemed manufacture by labeling or rebranding triggers excise duty on MRP less applicable abatement under tariff classification. Affixing a brand name, labeling, relabeling, packing or repacking in a unit container or any treatment to render goods marketable amounts to deemed manufacture under the Third Schedule irrespective of import route; where MRP-based valuation notification applies, excise duty is payable on MRP less the prescribed abatement, with tariff classification determining applicability to photographic cameras.