Re-packing from 50kg bags to 25kg bag of raw material amounts manufacture or cleared as such transaction?

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..... Re-packing from 50kg bags to 25kg bag of raw material amounts manufacture or cleared as such transaction?
Query (Issue) Started By: - Yatin Bhopi Dated:- 22-12-2014 Last Reply Date:- 22-12-2014 Central Excise
Got 3 Replies
Central Excise
Dear experts We are manufacturer (Chapter heading No 39) and our products are only for industrial use (No retail sale). Our products are valued as p .....

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..... er section 4 (on transaction value). We have purchased product X our raw material and which is falling under chapter 29. Now due to cancelation of final product order, we wish to sale this raw material X. Product X was purchased in 50kg bags but the customer is insisting to send the product X in 25kg bag instead of 50kg bag (No any other activity is carrying out) . Please let me know: Can we sal .....

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..... e product X in 25kg after re-packing it from 50kg bag? And are we need to follow rule 3 (5) of CCR 2004 to pay duty? or Is this activity amounts to manufacture? And duty will be payable on transaction value. Reply By PAWAN KUMAR: The Reply: Dear Sir, As per my view, please read the chapter heading notes of main chapter 29. The re-packing of goods from bulk packing into small packing is under m .....

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..... anufacturing operation, hence excise duty on transaction value will arise. The subject goods shall be supplied at current rate of duty on transaction value. Reply By Naveed S: The Reply: Sir, Packing/repacking is not being done for the finished goods but for the raw material purchased. I assume you should clear the goods under rule 3(5) of the CCR,2004, as clearing under finished goods shall i .....

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..... nvite unnecessary confusion, as you are carrying out such procedure only once and due to cancellation of your final product order. Reply By Naveed S: The Reply: Sir, If its a one time clearance, then you may clear it under rule 3 (5). If it is a continuous process, then it shall be termed as manufacture of goods, as explained by pawan ji.
Discussion Forum - Knowledge Sharing .....

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