Powder Coating on Motor Vehicle Parts

[Ashok Chopra]

Respected Forum,

I am doing Powder Coating on Motor Vehicle Parts.  Using powder purchased by me. Not charging any service tax or excise duty.  Principal  manufacturer is paying excise duty on the product being Powder Coated by me.

Please guide me in the light of Notification No. 25/2012 dated 20-06-2012, what is my liability.

Does Powder Coating activity is 'AMOUNT TO MANUFACTURE' as per Central Excise? if yes, should i apply for registration certificate as my previous year aggregate sale of specific service is more than 3.00 crore.

Prior to 01-07-2012 i was availing benefit of input services and inputs and charging Service Tax on the services provided by me as i am registered with Service Tax under B.A.S.

If powder coating is amount to manufacture either before or after  01-07-2012, what should i do and what immediate step i should take to save myliability of central excise

thanks and regards

AI Summary

Powder Coating Motor Parts is Manufacturing, Subject to Excise Duty, Requires Registration Under Central Excise Rules. An individual inquires about the tax implications of performing powder coating on motor vehicle parts, questioning whether this activity constitutes 'manufacture' under Central Excise rules and if registration is necessary given their sales volume. A respondent clarifies that powder coating is considered manufacturing, thus subject to excise duty, and advises obtaining central excise registration. The discussion references a tribunal decision affirming that such processes amount to manufacturing, exempting them from service tax under Business Auxiliary Service. The inquirer is advised to pay any due excise duty with interest and consult with the Commissioner for further guidance.