Whether excise duty is applicable?

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Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2012 one of my client is purchasing footwear.after purchasing they put their brand name on footwear and sale these product in market. I want to know whether this process of branding amounts to manufacturing or deemed manufacturing under CETA. Whether excise duty is applicable on it?

Pankaj Gupta

Pankaj Gupta (Expert)
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12 December 2012 Yes the act is covered under the defination of deemed manufacturing.

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2012 ok. thank you sir.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2012 if that entity is selling footwear without brand name also, means purchase footwear & sale them in market without putting brand name. in that case i want to know for the purpose of considering whether entity is SSI unit or not(limit of 150 lakhs) , sale without brand name of footwear should be considered or not?

Querist : Anonymous

Querist : Anonymous (Querist)

Pankaj Gupta

Pankaj Gupta (Expert)
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15 December 2012 Then it will be a simple trading activity and hence central excise act will not apply on it. Because the act is applicable on manufacturing activities only. But the assessee should Neither repack the goods nor he should alter the MRP of the pack.

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 Hello

Dear Pankaj ji i think u did not understand my query. entity is selling both branding ( with own brand name) & other footwear( with other brands & non branded) foot wears. in some of footwear they put their brand name in their warehouse & some foot wears are directly sold after purchased. in this case process of branding ( putting brand name of product)is deemed manufacturing or not? i also want to ask other provision applicable in this case like

1. for the purpose of considering whether entity is ssi or non ssi sale of only own brand name is to be considered on both sale ?
2. Rate of excise duty applicable on footwear( leather or non leather both).

Pankaj Gupta

Pankaj Gupta (Expert)
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19 December 2012 Ok........sorry for the mistake!!

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Pankaj Gupta

Pankaj Gupta (Expert)
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19 December 2012 Actually , The footwear that you are purchasing to be sold as it is(ie without branding) will not be considered to calculate the limit of 150 lakhs. Because it is not manufacturing activity.
Only the activity of manufacturing and deemed manufacturing is considered for calculating the exemption limit of 150 lakhs. Hence you have to see the turnover of the activities of branding the bought out gooods and those goods which you manufacture yourself(if any).
And for rate of excise duty , you should check the relevant heading in CETA.

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