TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 70
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....transportation and handling of all kinds of products, goods, and articles from one place to another either by land, air, sea or by means of motor vehicles and/or aero-planes or by any other means of transport; to carry on the business of marketing, advertising and promotional support for all kinds of consumer goods and products on its own account or on behalf of persons, companies located in and outside India; and to engage in the business (whether as owner, manager, operator, consultant, partner, adviser, etc) of creating technology and developing software for the purpose of facilitating wholesale trading, online sale and purchase of any kinds of goods, commodities and merchandise and to carry out any and all such activities as may be related to or in connection with carrying on the trading activities. 2. The question of law for which an advance ruling sought is; Whether following proposed activities to be undertaken by the applicant can be regarded as 'manufacture' or 'deemed manufacture' under Section 2(f) of the Central Excise Act,1944. 1. Inspection and testing 2. Cleaning and lint brushing 3. Jewellery correction 4. Activities relating to spectacles ....
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....P of any product/item received in the warehouse; that all items, where required, would already have an MRP/RSP affixed or pre-printed; that the activities proposed to be undertaken by the applicant is intended to protect the goods and facilitate the inventory management, storage, minimization error shipment, pilferage, etc; that the activities proposed to be undertaken by the applicant is not different from the conventional supply chain adopted by the consumer goods industry and the overall intent is to facilitate the sale of products of applicant on a wholesale basis; that no value addition is undertaken vis-à-vis the products itself. 5. Revenue in response to the application replied that all the activities mentioned at S.No.1 to S. No. 23 will not constitute manufacture, except for following activities described by the applicant as under; I. ASINStickering: The ASINstickering refers to affixing a barcode on the goods when the original barcode on the products does not exist or is not readable. It provides the description about the product (such as brand, colour, size, etc.). It assists in tracking the goods warehoused. The ASINstickering is affixed on the bubble wrap, bag....
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.... to be defective or not in compliance with the description and sidelined for inspection by the quality control team. However, in this activity, quality check/testing is not undertaken. Therefore, activity of Quality Check Stickering will not amount to manufacture under Section 2(f) ibid. 9. Further applicant submits that for the activities, mentioned at S. No. 12 to 23 above, this Authority vide Ruling AAR/CE/04/2012 dated 24.08.2012 in case of M/s Amazon Seller Service Private Ltd., had ruled that they do not tantamount to manufacture. Since the activities mentioned at S. No. 12 to S. No. 23 above are same (which also includes ASIN and Blank Stickering as also Quality Check Stickering under the head Stickering at S. No. 18 above) as were held not to be manufacture under Section 2(f) of the Central Excise Act, 1944 in case of M/s Amazon Seller Service Private Ltd., we hold that the said proposed activities will not constitute manufacture. 10 . Activities mentioned at S. No. 1 to 11 above are activities, for which, advance ruling has been sought by the applicant i.e. whether these activities amount to manufacture under Section 2(f) of the Central Excise Act, 1944. Revenue agrees w....
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....items for which the tags are not visible. This method is used when ASINStickering or Blank Stickering is not sufficient. Ex: A shirt in polybag - with the barcode tag overturned. The activity involves opening the bag, flipping the tag and the re-sealing the bag. In case where jewellery has to be shipped to the customers, an applicant's tag is applied while placing the item in the box to prevent the return of counterfeit items. This activity serves as a way to identify the particular unit is sent to the customer. 12. Revenue submits that on verification of the Xerox copies of the photographs of the tags submitted by the applicant on 16.11.2015, it is seen that they contain the names of brands such as "NEXT Jewellery", "Bare Monkey", "Abraxas" etc. The applicant is attaching these tags to the jewellery before dispatch. It has to be ascertained whether the said brands are registered brands and as to whether the said brands' name is already embossed on the said jewellery or otherwise. If the applicant is tagging on bare jewellery without anybrand mark and if they are registered jewellery brands, then, the activity may amount to manufacture. However, the assessee has not submit....