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Excise registration for repacking

SHIVANG (Practicing CA) (124 Points)

31 March 2016

I am buying a chemical in big quantity in large container of Approx 1 tonn. Repacking in drum of Aprox 25 Kg. with my labeling and MRP. 1. Do I need to take manufacturing license in Excise? 2. I am already having dealer and importer registration under excise. Can I amend the activity in the same license?

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2 Replies

CA Suri Kota (Assistant Manager @ EY) (955 Points)
Replied 31 March 2016

As per Central Excise Tariff Act, certain processes like repacking amounts to deemed manufacture and you have to get registration for that.

Thanks,

Suri

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Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 13 April 2016

Dear Sir,

Firstly you are having dealer and importer registration. In this regard you received the materials and sale the same with value addition and pass on the Central Excise Duty accordingly. It is different activities.

You are brief that you received the materials and sale the same in huge or small quantity as per market requirement. In this case you are exempt from Excise Registration when you sale upto Rs. 1.50 crore exclude all taxes (Rs. 1,50,00,000/-). As per Central Excise Notification No. 08/2003 C.E. dated 01.03.2003. When you crossed the your exemption limit i.e. 1.5 crore. You are liable to get registration.

It is no matter you already got the registration Dealer or Importer Dealer.