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Tinting Activity - Dealer (Depot) can carry ot such activity

Central Excise - Started By: - SANDESH SHINDE - Dated:- 24-4-2015 Last Replied Date:- 27-4-2015 - Dear Sir, We are a mfg co, we are supplying base paint to our depot registered under excise and stainer from our another factory to the same depot. Can such depot can carry out such tinting activity at depot and clear the goods to the end customer. If yes whether such depot can avail cenvat credit of base paint and as well as stainer received and pass on the same to the end customer. Or It the tinti .....

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blending the base paint with stainer would amount to manufacture and will attract excise duty as per Section 2 (f) of Central Excise Act, 1944. If such blending can be carried out by the customers themselves which do not require any special technical skill then also it will not amount to manufacture. If mere mixing of base paint with stainer do not induce any chemical reaction and such blending is only a physical process then it is not manufacture. - Reply By MUKUND THAKKAR - The Reply = Circula .....

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tainer to obtain paint of different shades amounts to different shades amounts to manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944. 2. This activity of tinting of base white paint is carried out by the companies in their tinting centres or the sale depots. This process of tinting involves adding required quantity of stainer with acrylic emulsion/ enamel base whites and mixing them in order to obtain the desired shade of the emulsion/wnamel paint. Both the base white .....

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s of tinting does not bring about any new commodity with different commercial identity as the resultant emulsion/ enamel paint in various shades obtained continue to remain as emulsion/enamel paint and hence it may not appropriate to consider this process as amounting to manufacture specially in the absence of Chapter Notes to that effect. 4. the Board has taken note of the following facts: (i) The emulsion/ enamel paint of white colour is itself a complete product on which due duty has been dis .....

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ontinue to be the same in which base white paint is cleared from the factory and no repacking is done. (iv) Duty is being discharged on the various base white paints while clearing from their plants on the assessable value based on the final selling price of the paint. 5. The Board has taken note of the judgement of Hon'ble Supreme Court in the case of Delhi Cloth and General Mills. Ltd. 1977 ELTJ (1999) wherein it has been held that: Manufacture implies change, but every change is not manuf .....

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