EXEMPTION FROM REGISTRATION

This query is : Resolved

SANDEEP KUMAR SHAH (Querist)
Follow

26 April 2011 Dear Members,

Please give your opinion on following –
ABC (P) Ltd. is a manufacturing co., having infrastructure to manufacture 3 different kinds of products.

It manufactures and sale one product and Clearance Value is Rs. 1,25,00,000.

It does job works of 2 other products and receive Job Work Charges as consideration amounting Rs. 50,00,000.00

Whether ABC is required to get Registration under Central Excise?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

28 April 2011 The value of 2 products for which it does job work would be the selling price of the supplier of raw material. If the same is for consumption further and not for sale then ABC would have to find out what is the valkue of RM and add the JW charges _ 125 Lakhs and on the amount in excess of 150 L pay the CED.
This is assuming that the previous years value of clearances did not exceed 400 l. If exceeded then the liability would be for the whole.