Manufacturer importing goods for re-sale

no excise duty need to be paid....as no processing is involved............wch does nt satisfy 1 of the "m"i.e manufacture, the othrs being moveability marketibility & metion in ceta.................

howevr d custom duty on import 2gtr wth counterveiling duties will compensate excise........

If such imported goods are brought into factory (excisable) premises, repacked into same sized or different sized drums and sold to other party's, would the same attract excise.

Also, like a dealer has to transfer the excise benefit when he procures from the manufacturer, is the manufacturer required to do the same as the registration is as a manufacturer and not a dealer. (so, what all benefits are required to be transferred to the buyer)

Thanks

Mr. Sumeet,

Please refer to Section 2 (f) of Central Excise Act defining Manufacture. It is as follows:

" (f)         “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; or

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;"

 As per the above definition 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 would amount to manufacture in respect of goods mentioned in Third Schedule.

In other cases, repacking amounts to manufacture only if without such repacking goods were not marketable. Repacking only for the convenience of sale does not amount to manufacture.

So you need to check whether goods imported by you fall under the Third Schedule. In case it does not, the process is not manufacture and you will come under the category of First Stage Dealer and would require to get registered accordingly. Being a dealer you may Transfer CVD u/s 3(1) that is equal to excise duty & CVD u/s 3(5) that is equal to VAT (I suppose) to your customers.

I agree with Mr. Gupta.