My client ABC CO. purchase Lubricant from XYZ Ltd and then repacked that product into his name and put his Trademark on the packing But ALSO MENTIONED THAT "MANUFACTURED BY XYZ LTD"
Pls suggest whether Excise is applicable on ABC Co. or not?
27 November 2012
Packing / Repacking in new packs / small packs amounts to deemed manufacture under the central excise. It is irrelevant that the assessee mentions such things like-- MANUFACTURED BY XYZ LTD.
What is relevant is that, manufacture process is being carried on by the assessee in his premises. Hence your assessee should apply for registration of central excise if his annual removal is 150 lacks or more.
29 November 2012
Sir, What happened if ABC does not change the packing rather on the same packing by XYZ, he simply mention his company name as ABC ltd and manufactured by XYZ ltd
29 November 2012
Mere affixing of label on ready to use product is not manufacture. If you have to change the MRP on the product that will be amounts to manufacture.
CAclubindia
