Will folliwng process be considered as trading?

We are a company involved in supply of fixed furniture items like wardrobes etc for housing projects. If we purchase wardrobe (assembled but without doors) from one supplier and doors from another supplier   and accessories purchase from another supplier  and hardware purchase from  different  suppliers , and sale to one  customer  and bill raised as a one wardrobe set (without processing or doing any production/assembly), will this transaction be treated as trading? This turnover will be added in excisable turnover?

Presently we are not a excisable unit as our turnover is below excise limits. But in near future, we may cross turnover of  1.5 crores, including trading as mentioned above which is over 80% of over total business.

Replies (2)

conversion of diff four inputs in a diff final output is to be treated as manufacture and exice duty is payable. however ssi benefit of 150 lacs is available to you 

 

trading is to sell the goods as in purchased condition, not in converted form, conversion is manufacture in eyes of excise.

Though you are raising bill as one wardrobe set, it does not amount to manufacture.  Only if you assemble all the parts and making it a wardrobe, it will attract excise duty.  You need to see the substance over form.

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