Repacking and relabelling of Bought out items alongith final product

[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.

[YAGAY andSUN]

Service tax would be payable on this transaction. Challan would be issued to send the goods to job worker.

AI Summary

Service tax on job work repacking and relabelling applies; goods should be sent to the job worker under challan. Repacking and relabelling of bought out items by a job worker was queried as to whether it amounts to manufacture and attracts excise; the reply advised that the activity attracts service tax and goods should be sent to the job worker under a challan.