Applicability of Excise

[Rahul Bagaria]

I wanted to know if any labelling in the box of the product will attract excise.

Also, if the main box ( carton) is segregated into 2 small box ( carton) and then further labelling done, will excise duty attract? 

[Vaidyanathan Venkat Raman]

For excise duty to be applicable, the activity carried out by you should fall under deemed manufacture. You are required to ascertain if the product on which packing activity is carried out is falling under the third Schedule to CETA 1985. Then the question of excisability arise.

[A Wilson]

Dear Sir,

Generally, the Labelling or repacking of certain products fall under deemed manufacture. If you can able to provide the Product Name and Central Excise Tariff No., we may check the same in the Central Excise Tariff Act.

Thanks & Regards,

A.Wilson

 

 

AI Summary

Deemed manufacture determines excise liability: labelling or repacking may attract duty if tariff classification so provides. Applicability of excise on labelling or repacking depends on whether those activities constitute deemed manufacture; this requires identifying the product and its Central Excise Tariff classification and checking whether the relevant tariff schedule treats packing or labelling as manufacturing activity that attracts excise duty.