Does assembly of components amounts to manufacture under Central excise act
As per section 2(f) of Central Excise Act, 1944 (CEA), manufacture includes any process i) Incidental or ancillary to the completion of a manufactured product AND ii) Which is specified in relation to any goods in the section or chapter notes of the 1st Schedule to the Central Excise Tariff Act, 1985 (CETA), as amounting to manufacture (deemed manufacture) OR iii) Which in relation to goods specified in 3rd Schedule of CETA involves packing or repacking of such goods in a unit container or labeling or re-labeling of containers including declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer (deemed manufacture). Thanks
Manufacture means a change. But every change does not amount to manufacture. Every change is a result of labour and manipulation. A new product having distinctive name, character or use must emerge. Assembly of various components may amount to manufacture if a new product having distinct name, character or use and which satisfies the condition of movablity or marketablity emerge.