Central Excise Tariff Act, 1985 Note 3 to Chapter 18 – Central Excise – Labelling as manufacture – CENVAT Credit — Labelling activity undertaken by the respondent at its Taloja unit amounts to “manufacture” under Note 3 to Chapter 18 of the Central Excise Tariff Act, 1985. The process of labelling or re-labelling of containers, as defined in the statutory provision, constitutes manufacture regardless of whether it enhances the marketability of the goods.
The substitution of the word ‘and’ with ‘or’ in Note 3 post-amendment widens the scope of activities deemed as manufacture, encompassing labelling or re-labelling of containers, repacking from bulk packs to retail packs, or any other treatment to render the product marketable.
The labelling activity undertaken by the respondent, therefore, falls within the ambit of manufacture, entitling it to avail cenvat credit and rebate on duty paid. Consequently, the appellant’s contention that labelling does not constitute manufacture is not tenable. The order of the CESTAT affirming the labelling activity as manufacture is upheld, and the appeal by the revenue is dismissed. (Para 15)
SUPREME COURT OF INDIA
2024 STPL(Web) 307 SC
[2024 INSC 354]
Commissioner Of Central Excise Belapur Vs. Jindal Drugs Ltd.
Civil Appeal No. 1121 OF 2016 With Civil Appeal Nos. 788-790 OF 2022-Decided on 30-04-2024
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