Shrink Wrap Compliances, Other Topics

[Tej Anand]

Good Afternoon ,

I would like to have your comments on the below mentioned subject :

 

Suppose there is a company in India which imports mobiles from China . The mobiles received from China are in mother boxes and in mother boxes there are say suppose 20 mobile boxes . 

Once these are imported from China and we receive them in India we open these mother boxes and each mobile box is shrink wrapped and then the same is put once again in mother boxes and sent to different warehouses in India from main warehouse .

Can you please let us know if there is any tax implication and view point from the Factory Act or any other act applies to this . Also let us know if we need any licence / permission / Registration .

The above company in India is just importing from China and then reselling in India .

Request you to kindly comment on the same and give us your kind views.

Thanks & Best Regards

Tej Anand

 

Posts / Replies

[Radha Arun]

In terms of sec 2(f) of the central Excise Act, read with the third schedule thereto, adoption of any treatment on the goods to render them marketable to the consumer is deemed to be manufacture.

It could be argued that shrink wrapping is not a 'treatment'; but there can be different views on this. One can expect litigation.