Excise query

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QUERY

A manufacturer who is having a proprietary concern whose turn over in first 6 months is 1 crore & after that it is dissolved. After dissolution of proprietary concern a partnership firm is formed in the same name & it has a t/o of 60lacs for next 6 months.

  1. Now will the turnover of proprietary concern & partnership firm will be merged for the purpose of excise liability?
  2. What will be the situation if the proprietary concern is converted into partnership firm?   

  

 

Replies (2)

it would be clubbed

read the lines in notification 8/2003

 

by a manufacturer by one or more factories

by a factory by one or more manufacturers

 

so the gross turnover for the year would get clubbed for excise purpose as the factory remains same.

As per the above mentioned notification which if tariff notification 8/2003, Total turnover of both the manufacturer is to be clubbed as notification uses the word one or more manufacturer in point no. vi) of the said notification.

 

Hence will be liable to excise.

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