Re Painting of Auto Parts - whether deemed manufacture?

[Vinay Sharma]

Dear Sir,

We undertake painting of Auto Parts. Painting of Auto Parts  is deemed manufacture as per Section XVII note No. 6 of the Central Excise Tariff .Therefore we charge excise duty on the same.

After the painted material is sent to OEM customer, some of the components come to us for re - painting from the OEM customer due to original paint on components get damaged in their factory or got some stains or marks etc.

After stripping the original paint these components are re- painted in our factory. Will it be regarded as deemed manufacture under Section XVII note no. 6 ?

With best regards

 

AI Summary

Repainting Auto Parts: Does It Qualify as 'Deemed Manufacture' Under Section XVII Note No. 6? Rule 16 Compliance Key. A discussion on whether repainting auto parts is considered 'deemed manufacture' under Section XVII note No. 6 of the Central Excise Tariff. An individual inquires if repainting components returned by an OEM customer after damage qualifies as deemed manufacture. A respondent confirms it does, but emphasizes compliance with Rule 16 of the Central Excise Rule, 2002. The original inquirer seeks further clarification, noting the customer's preference for service tax over excise duty on these transactions.