Central Excise - Chapter 39 - Moulding powder prepared out of LDPE/HDPE granules - Whether amounts to manufacture - Question regarding - Central Excise - 15/88-CX.3

Central Excise - Chapter 39 - Moulding powder prepared out of LDPE/HDPE granules - Whether amounts to manufacture - Question regarding Circular No. 15/88-CX.3 Dated 10-8-1988 [From F. No. 93/7/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Chapter 39 - Moulding powder prepared out of LDPE/HDPE granules - Whether amounts to manufacture - Question regarding. A doubt had been raised as to whether the preparation of LDPE/HDPE moulding powder out of LDPE/HDPE granules amounts to manufacture in the light of note 6 of Chapter 39 of the Schedule to the Central Excise Tariff Act, 1985. 2. The matter has been examined by the Board. It is observed that, as per note 6 of Chapter 39 of the Schedule to the Central Excise Tariff Act, 1985, the conversion of one primary form into another primary form in respect of heading numbers 39.01 to 39.14 amounts to manufacture. Since LDPE/HDPE moulding powder is being obtained out of the LDPE/HDPE moulding powder (granules) by the method of pulverisation, so the same amounts to conversion of one primary form into another primary form. Even the pulverisation of granules into powder form would amount to manufacture. 3. It is accordingly clarified that conversion of LDPE/HDPE moulding powder (granules) into Moulding powder (powdered form) would amount to manufacture in view of note 6 of Chapter 39 of the Schedule to the Central Excise Tariff Act, 1985. 4. The trade interest may also be suitably advised. 5. All pending assessments may be finalised on the above basis.