Repacking of MRP products falling under any chapter heading, Central Excise

[SANDESH SHINDE]

Dear Sir,

We are a manufacturer of MRP products, If we want to transfer the product to our depot, and at there i.e. depot they are repacking such material. So if our product falls under relevant chapter heading in which repacking does not amtsto manufacture, Then also even if the depot is doing repacking of such material then whether it amts to manufacture, i..e if mrp products falls under any chapter heading then whether repacking or relabelling amts to manufacture,Pls explain ,thanks and regards,.

Posts / Replies

[Naveed S]

Section 4A applies only to 'pre-packed commodities' and not to loose commodities.

'Pre-packed commodity' means a commodity or article which is placed in a package without purchaser being present, so that quantity of the product contained therein has a pre-determined value and such value cannot be altered without the package or its lead or cap being opened or undergoing a perceptible modification.

Goods covered under this section removed without declaring the retail sale price on the packages or where the MRP is tampered, altered or obliterated after their removal, then all such goods will be liable to confiscation.

In view of above, MRP goods that are cleared from factory premises should strictly not be repacked/relabelled at the depot.

[Arun Kumar Singh]

If you are manufacturing the goods and paying duty then you should supply the goods from factory on MRP based. If you have to do this activity from depot then department can raise the objection and duty liability will arise on value addition of the goods.