Finished Product Condition

[RAM SHARMA]

Dear Experts,

We have purchased corrugated boxes without strapping. If we made  strapping and our labeling on this corrugated boxes then we treat as a final product of our company. Pl clerify.

Thanks

[YAGAY and SUN]

I don't think that such activity would fall under Deemed Manufacture under Section 2 f(iii) of the Central Excise Act, 1944 as amended time to time since there is no mention about such activity in the Schedule 3 of the Central Excise Tariff Act, 1985.

Please read the definitoin of deemed manufacture as well as schedule 3 simultaneously.

AI Summary

Deemed manufacture: adding strapping and labeling to purchased boxes does not qualify if absent from schedule provisions.
Whether adding strapping and company labeling to purchased corrugated boxes constitutes deemed manufacture; the advisor indicates it is not, because the activity is not specified among the transformative operations listed in the applicable schedule to the excise tariff and one should read the statutory definition of deemed manufacture alongside the schedule.