Excise duty applicable or not

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Vishal Momaya (Querist)

02 October 2010 I am a sole proprietor of a firm dealing in LED Light Fitting.I am about to supply LED Light Fitting to a big furniture manufacturer, who in turn will use these light fittings in their Furniture. For this I will purchase few Electronic Components and LEDs from different Suppliers of mine and just assemble every thing together to form a finished LED Light Fitting. But there will be no Machinery involved in this assembly Process. Every thing will be assembled by hand. So my query is :-
Is this process of assembling termed as Manufacturing? Will I be termed as Manufacturer? Should I apply for Excise Registration?
Is my Product applicable to Excise Duty?, if yes then what will be rate of Excise duty on my Product and Am I eligible for any concession under any ACT. And what will be my Concession Limit. My last years turn over was just 15 lakhs, but after this order from next year turn over might increase to over 3crore.
I request a help in this matter. Any one who can guide me on this may please e-mail me details on my e-mail id : vdm.led@rediffmail.com

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

03 October 2010
Assembly of various parts to form some toher item understood in trade as different and distict amount to manufacture under sec 2(f)(i).
As long as the light fittings do not have the brand name of other persons your value of clearacnes upto 150 lakhs would be exempt from duty of excise. [ssi exemption]After 150 lakhs you could avail the set off of duty of central excise paid on parts.

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