ravi (senior accountant) (507 Points)
21 November 2011My client brings geera and pepper in bulk quantity and repacks into small or retail pack whether this amounts to manufacture?
If it is a manufacture under central excise act whether any registration /returns /assessments required under excise act ?
pls suggest and give me the details
pls explain whether excise act applies to all commodities (Geera/ pepper/dals) etc or it only applies to petrol or fireworks
pls give me a general understanding about excise act
praveen
(Chartered Accountant)
(6971 Points)
Replied 21 November 2011
It is not manufacture.
Mere convertion of wholesale pack to retail pack is not manufacture when it does not lead rise to a new commodity.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 21 November 2011
excise is applicable on packing / repacking / levelling of "manufactured goods" as said by yourself, its jeera / pepper , and its crops / spices, ( natural products) and not manufactured, hence ED inapplicable unless any processing is done by sone manufacturer.
nilesh
(Indirect Tax)
(82 Points)
Replied 31 May 2012
Dear Expert,
can somebody provide me the details note on packing and repacking activity whether excise duty applicable or not,
Thanks
Nilesh
Sunil Kumar G
(AGM Taxation)
(373 Points)
Replied 01 June 2012
Deemed Manufacture is applicable to those products specified in Third Schedule of the Central Excise Tariff Act, 1985.
The prodcut pepper and cumin is defined in chapter 9 does not attract any central excise duty, so packing or repacking itself does not amount to manufacture.
Pls find the definition of manufacture,
Section 2 (f) of Central Excise Tariff Act, 1944 defines manufacture as,
"manufacture" includes any process, -
(i) incidental or ancillary to the completion of a manufactured product;
(ii) which is specified in relation to any goods in the Section or Chapter notes of the First
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture;
(iii) which, in relation to the goods specified in the Third Schedule, involves packing or
repacking of such goods in a unit container or labelling or re-labelling of containers
including the declaration or alteration of retail sale price on it or adoption of any other
treatment on the goods to render the product marketable to the consumer, and the word
"manufacturer" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any
person who engages in their production or manufacture on his own account;
CAclubindia
