Applicability of excise on repacking of goods

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This query is : Resolved

CA. Naveen Jain (Querist)

27 November 2012 Sir,

My client ABC CO. purchase Lubricant from XYZ Ltd and then repacked that product into his name and put his Trademark on the packing But ALSO MENTIONED THAT "MANUFACTURED BY XYZ LTD"

Pls suggest whether Excise is applicable on ABC Co. or not?

Pankaj Gupta

Pankaj Gupta (Expert)

27 November 2012 Packing / Repacking in new packs / small packs amounts to deemed manufacture under the central excise. It is irrelevant that the assessee mentions such things like-- MANUFACTURED BY XYZ LTD.

What is relevant is that, manufacture process is being carried on by the assessee in his premises.
Hence your assessee should apply for registration of central excise if his annual removal is 150 lacks or more.

CA. Naveen Jain

CA. Naveen Jain (Querist)

29 November 2012 Sir, What happened if ABC does not change the packing rather on the same packing by XYZ, he simply mention his company name as ABC ltd and manufactured by XYZ ltd

Arun Kumar Singh

Arun Kumar Singh (Expert)

29 November 2012 Mere affixing of label on ready to use product is not manufacture. If you have to change the MRP on the product that will be amounts to manufacture.

Pankaj Gupta

Pankaj Gupta (Expert)

29 November 2012 Yes in that case i too agree with mr arun kumar.

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