Tinting Activity - Dealer (Depot) can carry ot such activity

[SANDESH SHINDE]

Dear Sir,

We are a mfg co, we are supplying base paint to our depot registered under excise and stainer from our another factory to the same depot. Can such depot can carry out such tinting activity at depot and clear the goods to the end customer. If yes whether such depot can avail cenvat credit of base paint and as well as stainer received and pass on the same to the end customer. Or It the tinting activity which will be carried out by the depot not amts to manufacture then whether the depot can only sell goods on commercial invoice,Please explain, Please give any reference regarding this,thanks and regards.

AI Summary

Manufacturing Depot Can Conduct Tinting, Avail CENVAT Credit, Must Pay Duty on Value Addition Per Excise Rules A manufacturing company inquires if their depot, registered under central excise, can conduct tinting activities using base paint and stainer supplied from different locations and whether they can avail CENVAT credit for these materials. The response clarifies that the depot, as an extension of the manufacturing unit, can indeed take CENVAT credit and must pay excise duty on the value addition, even if the tinting does not amount to manufacturing.