Manufacture - Expression 'primary forms' under Note 6 of Chapter 39 applies to powders - Central Excise - 93/96/86-CX.3

Manufacture - Expression 'primary forms' under Note 6 of Chapter 39 applies to powders Letter No. 93/96/86-CX.3 Dated 13-10-1986 Government of India Ministry of Finance (Department of Revenue) New Delhi As per section 2(f) of the Central Excises and Salt Act, 1944, 'manufacture' includes any process, - (i) incidental or ancillary to the completion of the manufactured product; and (ii) which is specified in relation to any goods in section or chapter notes of the Schedule to the Central Excise Tariff Act, 1985, as amounting to manufacture. 2. In terms of Chapter Note 6 of Chapter 39, for purposes of Heading No. 39.01 to 39.14 the expression 'primary forms' applies to powders (including molding powders), granules, etc. and it is stated in the same Chapter Notes that conversion of anyone primary form into another shall amount to manufacture. The classification of the products in question would, therefore, be governed by the aforesaid provisions of the Chapter Notes. However, Chapter 39 is covered by the Modvat scheme and hence excise duty paid on a primary form of plastics would be available as credit for adjustment against the duty payable on another primary form of plastics manufactured therefrom. 3. It is further stated that it may not be possible for the Board to give clarification on individual commodities, which will be decided by the jurisdictional Collector/Assistant Collector after taking into consideration the relevant factors.