Aplicability of Excise

Save Share

This query is : Resolved

Abhijeet V Buyre (Querist)

05 January 2009 Hi,
our client is going to open the Ready Mix Concrete (RMC) businee soon. so, i just wanted to know, that will excise applicable for this ?

Rajesh Kumar

Rajesh Kumar (Expert)

06 January 2009 Excise duty is attarcted when the process amounts to manufacture. The factum of maufacture needs to be examined in each case. Such determination depends upon various factors like raw material used, process employed, marketability of the product, use of the product etc. Whether the process undertaken by your client amounts to manufacture or not, can be answered aonly after knowing these things.
It is further to be noted that many a times service tax is attracted, when the process doesnot amount to manufacture.
It is therefore suggested to examine the issue in detail to avoid any complication in future.

Abhijeet V Buyre

Abhijeet V Buyre (Querist)

08 July 2009 hi Dear,
the activity of my client is 100 % mfg, now what ? B'coz as per rule once i produce a product i have to create liability and not pay the liability..
i will pass JV as-
FA A/c --Dr
To Excise payable
As soon as my product will go outside my factory, i have to pay the duty. Bt my product is not going out of my factory. so how can i make liable to pay for this duty. As per Act-unless & until my product doesnt go out of my factory, i am nt liable to pay duty.. Now what ?????? if possible reply