Registration Required for a Manufacturer of Pan Masala and allied Products

[SHOEB VAPIWALA]

Dear Experts

We required following information for a new firm as a manufacturer of Pan Masala and allied products

1. What are licenses / registration certificates are required by the manufacturer before starting a business ?

2. Is there any prescribe limit i.e. ₹ 3.00 Crore / SSI Unit exemption to register with the Central Excise Authority?

We appreciate your response as soon as possible.

VAPIWALA S G

[Mahir S]

Sir,

Please refer the followiing link :-

http://www.cbec.gov.in/excise/cx-forms/spl-proc-panmasala.pdf

Also refer to Pan Masala Packing Machines (Capacity Determination And Collection of Duty) Rules, 2008

[SHOEB VAPIWALA]

Dear Expert

Thanks for your response.

Kindly suggest the query of 2nd question about threshold limit for SSI unit is applicable to Pan Masala Mfg. Unit of not?

If yes or no, please explain in brief.

Thanks

VAPIWALA S G

[Mahir S]

Sir,

Items like pan masala are covered under compounded levy scheme and therefore specifically excluded from the eligibility of S.S.I. exemption, even when these can be manufactured by SSI. The excise duty for such product shall be levied and collected in accordance with the provisions of the said section 3A. also Refer Notification no. 10/2010 CE (N.T.) dated 27.10.2010.

The tariff on pan masala is calculated through a compounded levy scheme as explained above. Under this, the excise duty is charged with respect to production capacity of a manufacturing machine and retail sale price of the product.

The excise duty is charged under 'Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 (which was further modified in 2010), depending upon the price of per packet of pan masala and production capacity of machines.

[SHOEB VAPIWALA]

Dear Expert

We are very much thankful for your guidance. We appreciate on your resolution of following questions.

1. Is there any threshold limit to register with Central Excise Authority? Do the registration is required prior to zero production or on first clearance of goods?

2. which other industrial licenses are required by a Manufacturer of Pan Masala and allied Products unit?

Your early response will be appreciated.

VAPIWALA S G

[Mahir S]

Sir,

1) There Is there no any threshold limit to register with Central Excise Authority/ The registration is required prior to zero production.

The excise duty is to be paid in advance ech month before manufacture and clearances, depending on the production capacity of a manufacturing machine.

You may contact the Jurisdictional Assistant Commissioner in the matter.

2) There may be quite a number of industrial licenses required for pan masala unit. Some of them are as under :-

The Cigarettes and Other Tobacco Products (Packaging and Labelling) Rules, 2008.

Prevention of food adulteration act.

Food Safety and Standards (Packaging & Labelling) Regulations, 2011.

AI Summary

Compounded levy scheme excludes SSI exemption and requires pre-production excise registration and machine-based duty collection. Pan masala manufacturers must register with Central Excise prior to commencing production; the product is excluded from SSI exemption because it is subject to a compounded levy scheme. Excise duty is levied under the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008, based on machine capacity and retail packet price, and is payable in advance each month. Additional compliance includes packaging and labelling rules, Prevention of Food Adulteration requirements, and Food Safety and Standards packaging and labelling regulations.