sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Latest Circulars »
 Results of Underwriting Auctions Conducted on May 24, 2018
 RBI to conduct 7-day Variable Rate Reverse Repo auction under LAF on May 24, 2018
 Results of OMO purchase auction held on May 17, 2018 and Settlement on May 18, 2018
 Auction of Government of India Dated Securities May 21, 2018
 Auction for Sale (Re-issue) of Government Stock (GS) May 21, 2018
  RBI-Setting up of IFSC Banking Units (IBUs) – Permissible activities
 RBI-Basel III Framework on Liquidity Standards – Net Stable Funding Ratio (NSFR) – Final Guidelines
 RBI imposes penalty on The United Co-operative Bank Ltd., Bagnan Station Road(North), PO- Bagnan, Dist- Howrah, West Bengal
 Auction for Sale (Re-issue) of Government Stock (GS) May 14, 2018
 Auction of Government of India Dated Securities May 14, 2018
 RBI declines to share copies of inspection reports

Central Excise Circular No. 927/17/2010
June, 28th 2010

Circular No. 927/17/2010-CX

F. No. 167/17/2010-CX.4

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs, New Delhi

New Delhi the 24th June, 2010

To,

All Chief Commissioners of Central Excise (Including LTU)

All Commissioners of Central Excise (Including LTU)

All Director Generals

Sir/Madam

Subject : Whether process of pickling and oiling would amount to manufacture - reg

It has been represented to the Board that certain units are undertaking the process of pickling and oiling in addition to process of de-coiling, cutting and slitting and whereas by circular No 811/08/2005-CX dated 02.03.2005 it has been clarified that processes of de-coiling, cutting and slitting do not amount to manufacture.

2. As per ASM Metal Reference Book, Third Edition page 65 Pickling is removing surface oxides from metals by chemical or electro chemical reaction  and pickle means the chemical removal of surface oxides (scale) and other contaminants such as dirt from metal by immersion in an aqueous acid solution. Therefore it can be said that the process of pickling is only a chemical cleaning process to remove scales and dirt from the metal by immersion in chemical solution and does not result in emergence of any new commercially different commodity.

3. For a process to amount to manufacture under Section 2f of the Central Excise Act, 1944, the process undertaken should result in emergence of commodity having different name, character and use. Since in the present case no new product emerges as a result of the process of pickling it will not amount to manufacture.

4. The tribunal has in the case of Resistance Alloys [1996 (84) ELT 507 (T)] & Bothra Metal Industries [1998 (99) E.L.T. 120 (Tribunal)] held that the process of pickling being preparatory process to drawing of wire does not amount to manufacture.

5. Therefore it is clarified that mere undertaking the  process of oiling and pickling as preparatory steps  do not amount to manufacture.

6. The trade and the field formations may be suitably informed.

7. Hindi version will follow.

8. Receipt of this Circular may please be acknowledged.

Yours faithfully

(Madan Mohan)

Under Secretary (CX-4)

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions