Sub:  Central Excise - Excisability of products of                              heading No. 30.03 - Labeling or re-labeling                              of containers - Reg.

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         A doubt has been raised as to whether in respect of goods covered under heading 30.03, labeling or re-labeling of containers in order to comply with the provisions of any State or Central Act shall amount to manufacture as per note 5 of Ch. 30 of Central Excise Tariff Act.

                    In this context Board vide its letter F.No. 102/4/95 - CX.3 dated 14.05.96 issued instructions to the effect that the process of pasting of stickers in the case of excisablity of imported finished medicines including life saving drugs marketed by the assessees may not be covered by note 5 of Chapter 30 of the CETA,1985.  However recently Board's attention was drawn to an instance where a Company in Bombay imported medicines namely, 'actilyse'and 'magnevists' from their principals in Germany and marketed the said product in India.  The Company carries out the process of stamping/affixing of stickers on the imported medicine as per the requirement of the Drugs and Cosmetic Act, 1940 and cleared the goods without payment of duty.  The stickers indicated the import license number, name of the Company, marketed by, product ingredients, warning and maximum retail price as required by the Drugs and Cosmetic Act,1940.  Also attention of the Board was drawn to the Audit objection raised to the effect that the process carried out by the company amounts to manufacture in terms of Chapter note 5 of Chapter 30 and that duty at the appropriate rate is payable.

The matter has been re-examined by the Board in the light of the audit objection, in consultation with Ministry of law.  Now it is clarified that  putting certain stickers on imported product, containing information for the benefit of the consumers, even if it is required by another law, is putting a label on the containers/outer packing to make the product marketable and in view of note 5 Chapter 30 of the Central Excise Tariff Act, 1985 such an activity will, therefore, amount to 'manufacture'.  Board instructions issued earlier in F. No. 102/4/95 - CX.3 dated 14.05.96 stands withdrawn.

   (Issued from file C.No. IV/16/2/2001 CX.Pol. Vol I)

   (Authority:  F.No.102/1/2000 CX.3 dated 16.05.2001)

                                                        /sd/

             JANAKI ARUNKUMAR   

 ADDL. COMMISSIONER (TECH..)

/sd/-

(N.UMA SHANTHI)

SUPERINTENDENT (TECH.)

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