Claim of excise duty

G Murali (Querist) 06 April 2012 This query is : Resolved
Dear Sir

I am working in a factory making automotive parts where we sell manufactured goods and purchased goods to customers .for the purchased good we inspect,clean , pack and sell to customer without any physical change after payment of Excise duty . At present we claim modvat on these parts , need opinion if this action of inspect ,clean ,pack can be termed as "manufacturing" and we can claim MODVAT.

Thanks G Murali

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Raj Kumar Makkad (Expert) 06 April 2012
Cleaning and packing activities cannot be termed as manufacturing so you are not entitled to claim modvat as per rules.

Deepak Nair (Expert) 06 April 2012
Assembling comes under the purview of manufacturing. But cleaning and packing does not.

prabhakar singh (Expert) 06 April 2012
if this action of inspect ,clean ,pack can be termed as "manufacturing" and we can claim MODVAT????.

NO,NOT AT ALL!!!!!!

G Murali (Querist) 06 April 2012
Dear sirs , thanks for the prompt reply. again if we deliver multiple parts as kit to customer is kitting considered a value addition ?
G Murali