26 July 2013
company A, in India, is importing one raw material and sells it to a Company B in India within the same state. Company B adds some more raw materials and makes a final product and sells the same to Company A. Then Company A inspects the final product (falling under Chapter 39) packs, labels and sells to its customers in India. Whether the activity done by Company A amounts to manufacture ? Can it avail Cenvat credit while buying from Company B? Are there any issues ? Please respond - urgent.
28 July 2013
In relation to products of heading 3920 and 3921, the process of metallization shall amount to manufacture under deemed manufacture. Duty liability will not be applicable on A. B can take the cenvat credit and they can pay excise duty. Because B is a manufacturer.