Repacking and Relabeling of Products

[Guest]

Dear Sir,

Can our Processor(i.e Job worker) carry out repacking and relabelling of Products. Such products are not MRP based products and as per that product chapter heading repacking and relabelling does not amts to manufacture.So please explain us how he can carry out such activity whether on payment of duty or whether without payment of excise duty, Please explain the procedure,Please give us any reference regarding this.Thanksand regards.

[Mehul Pandya]

you can follow Noti.214/86 for movement of excisable goods without payment of duty. No need to add excise duty where process does not amounts to manufacture. Duty should be discharged by the principal manufacturer.

AI Summary

Repacking and relabelling not amounting to manufacture: principal manufacturer retains excise liability; movement allowed under notification. Where repacking and relabelling by a job worker does not amount to manufacture, the job worker may perform those operations without payment of excise duty; the tax liability remains with the principal manufacturer. Movement of excisable goods for such processes can be effected under the notification authorising transfer without payment of duty, subject to compliance with its conditions, and the principal manufacturer must discharge duty where applicable.