Excise on readymade garment manufacturer with trading busine

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abhishek (Querist)

20 October 2011 Hi,

i have got a ssi manufacturing unit with a own brand. we also deal with trading business of textiles. wud like to know how does the excise is implemented on us. last year sale was 1.65cr which includes 45lacs of trading sales & 15lacs of jobwork sales
.
would like to know will the trading & jobwork sales is added up in total sales while calculating the excise exemption or not.

thanks in advance

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

24 October 2011 The exemption of 150 lakhs does not include trading activity.[ it maybe noted that in this chapter the relabelling, declaration ofprice is also manufacture]
Job work under Not. 214/86 for a manufacturer who pays the ED himslef is not included. Also for another SSI manufacturer under Not.84, 85/94 not liable. In both these cases the duty if any applicableis tobe paid by the manufacturer sending the raw material.
If neither then the value of job work charges + value ofmaterial sent free of cost if further manufacture involved. If fully finished at your end then the RSP less 55% would be the value of the job work.

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