Applicability of Excise Act, Central Excise

[venkatesh B]

Is Refurbishment of Electronic Goods Amounts to Manufacture that made Central Excise Act applicable?

Posts / Replies

[Ganeshan Kalyani]

To be simple - If new item emerges after refurbishment then excise duty is applicable otherwise no.

[MUKUND THAKKAR]

I agree view given by Ganeshan Kalyaniji, but sujbect to your turn over is more than 1.5crore.

[venkatesh B]

If scrap item is bought and refurbished, will it be considered as manufacture

[KASTURI SETHI]

Sh.Venkatesh B Ji,

Most of the electronic goods of Chapter 85 of Central Excise Tariff Act, 1985 are also covered under Third Schedule to Central Excise Act, 1944 attracting Section 2 (f) (iii) of Central Excise Act, 1944. If your goods are specified under Third Schedule you will be treated as deemed manufacturer. Therefore, if adoption of any treatment on the goods renders the product marketable to the consumer, will amount to manufacture. Before taking any decision you must ensure whether your product is specified under Third Schedule.

Reply to your query whether scrap if bought out and refurbished amounts to manufacture or not ; can be given only after confirmation of Chapter/Sub-heading of the product.

On the basis of facts available, I am of the view that the process of refurbishment amounts to manufacture. I also concur with the views of Sh.Ganeshan Kalyani, Sir.

[KASTURI SETHI]

Sh.Venkatesh B,

In continuation to my reply dated 25.3.2016, I add that if essential characters of any goods are changed by any process, that process would amount to manufacture in terms of Section 2 (f) of Central Excise Act, 1944 read with the concerned Chapter of the product under Central Excise Tariff Act, 1985.

Now read all the replies in a coherent style and preference-wise as mentioned below:-

1. Reply of Sh. Mukund Thakkar, Sir

2. Reply of Sh.Ganeshan Kalyani, Sir

3. Mine.

All replies have value in its own aspect. Go step by step in reading and understanding the message contained in replies.

 

 

[Ganeshan Kalyani]

Nicely replied by Sri Kasturi Sir. Reply is covering all the aspects. Thanks.

[MUKUND THAKKAR]

Nicely replied by Sri Kasturi Sirji...