What is Deemed Manufacture

What is Deemed Manufacture

The activities which are not manufacture in general sense but has deliberately included in the definition of manufacture, so that Excise Duty can be charged on them

Definition of Deemed Manufacture

It includes any process

(ii) which is specified in relation to any goods in the Section or Chapter Notes of the

Schedule to the Central Excise Tariff Act, 1985 as amounting to manufacture; or

(iii) which, in relation to goods specified in the Third Schedule, involves packing or repacking

of such goods in a unit container or labelling or re-labelling of containers including the

declaration or alteration of retail sale price on it or adoption of any other treatment on the

goods to render the product marketable to consumer

The Third Schedule to the Act covers the goods which are assessed on the basis of retail sale price

Exam Questions

Question 4
ABC Co. is buying oil in drums of 200 liters. They pack this oil in small tins of one litre each,
put their label giving details of contents, volume and MRP. Advise whether ABC Co. are liable
to pay excise duty on small tins sold by them.