Tinting activity (Depot) Dealer

[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 Company Seeks CENVAT Credit for Tinting at Depot; Must Register for Central Excise Compliance A manufacturing company inquired about conducting tinting activities at its depot, which receives base paint and stainer from different factories. The company questioned whether the depot could avail and pass on CENVAT credit for these materials and whether the tinting activity qualifies as manufacturing. The response clarified that invoices issued from a depot or consignment agent's premises, on behalf of the manufacturer, are eligible for CENVAT credit. However, the depot or consignment agent must be registered with central excise and is not considered a 'first stage dealer.'