Excisability on putting mrp

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This query is : Resolved

Rahul Jain (Querist)

07 January 2014 A person will import spark plug and put sticker of MRP & his contact details on it.

Whether it would be liable for excise?

If so whether there is any basic exmeptions or a turnover limit for applicability of excises

P V Ram

P V Ram (Expert)

07 January 2014 Excise Duty is levied on manufacture in India. In case of imports C V D is collected to offset excise duty.

As finished goods are being imported and sold as such by affixing only sticker, you can say that it does not amount to manufacture and hence no duty is payable.

Thanks!

Rahul Jain

Rahul Jain (Querist)

08 January 2014 But in Central Excise, alteration of MRP/Labelling/Branding also amount to manafacture upto my knowledge.

Is there any Turnover limit of Excise?

Rahul Jain

Rahul Jain (Querist)

08 January 2014 But in Central Excise, alteration of MRP/Labelling/Branding also amount to manafacture upto my knowledge.

Is there any Turnover limit of Excise?

P V Ram

P V Ram (Expert)

08 January 2014 As per Sec. 2 f (iii) affixing of mrp stickers is treated as deemed manmfacture.

Under SSI regulations this limit is up-to 1.50 crore and up-to 4.00 crore paying the duty on concessional rate is optional. After crossing this limit you would have to pay the excise duty on full rate.

You cannot avail cenvat tax credit, if exemption is being enjoyed.

Thanks!

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