Duty Payment on “Automobile parts, components and assemblies
This query is : Resolved
06 November 2008
We manufacturing Tractors for agriculture purpose as well as supplying the Tractor Parts to our customers from our Spare Parts Division situated in the same premises on one registration no. in Central Excise Department from 1st June-06 under cover the notification No. 14/2008-C.E.(N.T.), dated 1.03.08. Tractor is exempted for the payment of Excise duty and the “Parts, components and assemblies of any automobiles “are liable to pay the duty.
For the fulfillment the purpose of supplying the ‘Spare Parts of Tractor’ to the customers, we procure the material from the supplier’s in our “Spare Parts Division”.
After doing the re-packing and labeling of our company’s brand name, we sell the parts to the dealers and stockiest and discharging the duty of MRP after claiming the abatement.
In addition of the above, we procure the pre-packed material from the “ABC” in the fix lot size packing with the declaration of “ Manufactured and Packed by ABC “ which is required by the rule 6 (1)a of The Standards of Weight and Measures (PC) Rules,1977. from the suppliers who is situated in the duty exempted area in the Parwanoo of Himanchal Pradesh. ( being in the exempted area the said supplier not charge the duty, so there is no question of the duty credit at our side) and further when we sale these parts so purchased we not do re-packing and labeling (means we sale this material as it is condition) treating it as non-excisable sales.
My query is :- Can we sale this material without charging the excise duty as we are not doing any packing or re-packing, labeling on the above said material.
Pls. Clarify.
For the fulfillment the purpose of supplying the ‘Spare Parts of Tractor’ to the customers, we procure the material from the supplier’s in our “Spare Parts Division”.
After doing the re-packing and labeling of our company’s brand name, we sell the parts to the dealers and stockiest and discharging the duty of MRP after claiming the abatement.
In addition of the above, we procure the pre-packed material from the “ABC” in the fix lot size packing with the declaration of “ Manufactured and Packed by ABC “ which is required by the rule 6 (1)a of The Standards of Weight and Measures (PC) Rules,1977. from the suppliers who is situated in the duty exempted area in the Parwanoo of Himanchal Pradesh. ( being in the exempted area the said supplier not charge the duty, so there is no question of the duty credit at our side) and further when we sale these parts so purchased we not do re-packing and labeling (means we sale this material as it is condition) treating it as non-excisable sales.
My query is :- Can we sale this material without charging the excise duty as we are not doing any packing or re-packing, labeling on the above said material.
Pls. Clarify.
06 November 2008
1)The spare parts division has to be elsewhere.
2)It should be a mere buying and reseeling, without packing or repacking.
2)It should be a mere buying and reseeling, without packing or repacking.
06 November 2008
Dear Sir
Thanks for the clerification, But sir we are doing both the activities i.e-
1. Purchasing the material and availing the duty credit paid on the said purchase and selling the same paying the duty after doing the our packing.
2. Purchasing the material in pre-packed condition and not doing any packing or re-packing on this, and selling the same without paying the duty.
Can we not do both the activities in the same spare parts division at the same time ?
Thanks for the clerification, But sir we are doing both the activities i.e-
1. Purchasing the material and availing the duty credit paid on the said purchase and selling the same paying the duty after doing the our packing.
2. Purchasing the material in pre-packed condition and not doing any packing or re-packing on this, and selling the same without paying the duty.
Can we not do both the activities in the same spare parts division at the same time ?
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