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TMI Blog2016 (3) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... lacing the jewellery in the box to prevent return of counterfeit items. Application does not mention that applicant would affix or emboss brand name on the jewellery. Tagging in this case is not embossing or affixing. Therefore, the activity of tagging of jewellery would not amount to manufacture under Section 2(f) ibid. In view of the above, we hold that following activities undertaken by the applicant would not amount to manufacture or deemed manufacture under Section 2(f) of the Central Excise Act, 1944, namely; Inspection, testing and installing batteries, Cleaning, lint brushing and deodorizing, Touching up and re-stitching, Filing, debundling and jewellery correction, Activities related to spectacles and frames, Folding, hanging an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king and stickering prior to delivery of the goods to the merchant's customer; that after completion of the above activities, the goods are stored in the applicant's warehouse; that upon a merchant's customer placing a purchase order on the merchant's product through the applicant's online platform, the goods are appropriately dispatched to the customer after performing the necessary activities. The applicant has already sought the advance ruling in respect of such activities undertaken by them at the warehouse(s) prior to delivery of the goods to the merchant's customer and it was ruled that such activities do not amount to manufacture or deemed manufacture as per Section 2(f) of the Central Excise Act, 1944. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P affixed or pre-printed. That the activities proposed to be undertaken by the applicant at the inbound, outbound and customer return's stage is not different from the conventional supply chain adopted by the consumer goods industry and the overall intent is to facilitate the sale of products to the merchant's customers. No value addition is undertaken vis- -vis the products itself. 4. Applicant seeks an advance ruling on the following question: Whether following additional activities proposed to be undertaken by the applicant would be regarded as manufacture or deemed manufacture under Section 2(f) of the Central Excise Act, 1944; 1. Inspection, testing and installing batteries 2. Cleaning, lint brushing and deodor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Manufactures and it is noticed that the screws are loose. 6. Revenue submits that when suitable lenses are fitted in frames, only the product can be sold as spectacles/sunglasses. This activity is rendering the product marketable since without proper lenses, the said product can be treated merely as frame and not as spectacles/sunglasses and cannot be sold to the customer. Also a differently known distinct commercial product comes into existence. Applicant relied upon Hon'ble Calcutta High Court judgment in case of Bholanath Sreemony Vs Additional Commissioner of Commercial Taxes and other MANU/WB/0397/1978 wherein it was observed that it cannot, by any stretch of imagination, be held that the petitioner is a manufacturer of sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture under Section 2 (f) of the Central Excise Act, 1944 and Third Schedule to the CETA, 1985 depending on the goods involved. We observe that the applicant in their application had made it clear that all the proposed activities would not involve affixation, alteration or change in the Maximum Retail Price/Retail Sales Price ('MRP/RSP') of any product/item received in the warehouse. Further, all items, where required, would already have an MRP/RSP affixed or pre-printed. In view of this, we hold that putting of free items with other products, in this case, shall not amount to manufacture under Section 2(f) ibid. Tagging: This activity involves reapplying the tags in case they have come out. The activity does not involve applying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uced as under: 5. It is clarified that the excise duty leviable on precious metal jewellery, manufactured or sold under a brand name, is attracted only on such jewellery on which the trade/brand name or any such mark or symbol or even a number which is cross referred with such trade/brand name (not being a house mark used by jewellers for identification of jewellery at the time of exchange/resale) is indelibly marked or embossed. If such brand name is not affixed or embossed on the jewellery or article itself but appears on the packing such as the jewellery box or pouch or even on the warranty card or certificate of quality, such goods will not be treated as branded jewellery and thus will not be liable to excise duty. The clarification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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