law: Custom Act, 1962 
  65.
  
  Manufacture and Other Operations in Relation to Goods in a Warehouse. – 
  (1)
  
  With the sanction of the Assistant Commissioner of Customs and subject to such
  
  conditions and on payment of such fees as may be prescribed, the owner of any
  
  warehoused goods may carry on any manufacturing process or other operations in
  
  the warehouse in relation to such goods.
  (2)
  
  Where in the course of any operations permissible in relation to any warehoused
  
  goods under sub-section (1), there is any waste or refuse, the following
  
  provisions shall apply :- 
  (a) if the whole or any part of the goods resulting from such operations
  
  are exported, import duty shall be remitted on the quantity of the warehoused
  
  goods contained in so much of the waste or refuse as has arisen from the
  
  operations carried on in relation to the goods exported :
  Provided that such waste or refuse is
  
  either destroyed or duty is paid on such waste or refuse as if it had been
  
  imported into India in that form;
  (b) if the whole or any part of the goods resulting from such operations
  
  are cleared from the warehouse for home consumption, import duty shall be
  
  charged on the quantity of the warehoused goods contained in so much of the
  
  waste or refuse as has arisen from the operations carried on in relation to the
  
  goods cleared for home consumption.