We import certain switchgear products falling under 8536, in bulk, take it to stock, test it, label it ('tested, re-labelled and re-packed at our factory...') and sold to customers in small quantities. We have manufacturing registration. This is allowed under sec.2(f)iii, falling under schedule III (as deemed manufacturing). These products weighs more than 25 kgs, and we believe that does not come under valuation as per sec.4A. During recent excise audit, department auditors have raised objection that these products attracts valuation under sec.4A. Your kind opinion with relevant section/rules and also reference of any case laws, requested.
CAclubindia
