Excise query

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JAIDEEP SONPAL

51 Points Joined December 2009

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.

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

Replies (2)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

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.

CA Garav Gulati

Management Consultant

106 Points Joined September 2010

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.