Ankur A Mehta (CA) (375 Points)
24 September 2010Guys ... i m referring Bangar for IDTL .... n while studying i come to know that PACKING IS MANUFACTURING AS IT IS TREATED AS INCIDENTAL AND ANCILLARY FOR COMPLETION OF PRODUCT .... and further going in one case law of Sony Music Ent. Packing of CD s is not treated as manufacturing ... Y SO YAAR ??
Arvind Sharma
(ACA)
(1432 Points)
Replied 24 September 2010
As far I remember,
Packing shall be treated as Deemed Manufacturing u/s 2(f)(ii) & (iii) if it is from bulk packing to retail packing..
except others will not amount to "manufacturing" process., packing is just a process...
However,
the cost of packing shall be part of Transaction Values u/s 4.......
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 24 September 2010
packing for convenience does not amount to manufacture for the purpose of Chapter Note. If the product was already marketable, any amount of treatment to enhance its marketability would not amount to manufacture.
If the product is imported as ready to market retail packs, mere affixing the stickers, containing information like names and addresses of importer, MRP etc. will not amount to manufacturer
mere packing for convenience of sale or anything of already finished product does not amount to manufacture unless the product is covered by section 2(f)(iii).
Ankur A Mehta
(CA)
(375 Points)
Replied 24 September 2010
@ linesh
dude yaar but cd cant be sold in loose .. it cant b sold without paccking .. so to say that cd is marketable is not true in my opinion ... will u please remove my confusion if m wrong
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 24 September 2010
A process only amounts to manufacture when its is carried on goods manufactured by you to make those goods marketable.
unless packing is covered by section 2(f)(iii)
and in your case you have not manufactured CD.
and further in your case its also seems to be the case of repacking.bcoz CD was already packed.and what sony did ,is repacking of a packed product.and if CD has not been specified in third schedule.therefor not amount to manufacture.
This is my understanding if i also i got wrong then plz let me know the solution also.if u come to later on by expert.
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 24 September 2010
|
Case |
|
Whether manufacture |
Reason |
|
Packing of goods mentioned in 3rd schedule of CETA (on which RSP section 4A is applicable) from bulk to small container |
|
MANUFACTURE |
MENTIONED in section 2(f)(iii) |
|
Packing, if specified in relation to any goods in the Section or Chapter notes of the Schedule to the Central Excise Tariff Act, 1985 as amounting to Manufacture. |
|
MANUFACTURE |
MENTIONED in section 2(f) (ii) |
|
Packing in any other case unless no special product emerge. |
|
NOT MANUFACTURE |
C.C.EX. Vs. Prabhat Packaging Corporation (1990) and many more |
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 24 September 2010
As per Sec 2 (f) III packing or repacking of a goods for rendering the product marketable to the consumer would be deemed as a manufactured product only if the goods is specified in the third schedule. so merely packing and repacking is not sufficient to render the goods as manufactured.
Incidental or ancillary processes are those processes which are integral part of manufacturing and manufacturing is not complete unless that process is carried out, so if packing is integral part of the manufacturing process then only it will covered under term manufacture. [Breaks
keerthy
(article)
(22 Points)
Replied 24 September 2010
packing and repacking of goods cn b said as manufacture only when there is a new product arising or when packing makes the product complete and marketable....here CD is a complete product n packing is jus a convinience infact evn without packing cd is usable n marketable...so i think am clear......
Harsha
(Chartered Accountant CS (Final))
(227 Points)
Replied 25 September 2010
Thanks for the answer
Ankur A Mehta
(CA)
(375 Points)
Replied 25 September 2010
Thank You guys now m clear with my problem
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