Difference between Manufacturer Depot and Manufacturer

[Asked by Guest]

Dear Sir,

Can any manufacturing activity be carried out in any manufacturing depot,please explain,thanks & regards.

[Rajagopalan Ranganathan]

Sir,

Central Excise Law and the rules made thereunder do not provide to carry out any manufacturing activity in depots. If you carry out any activity which attract the provisions of Section 2 (f) of Central Excise Act, 1944 then you have to get the depot registered as a factory under Central Excise Act, 1944.

[Mahir S]

Sir,

If depots can be registered at the same where manufacturing activities are undertaken ( with conditions therein), then similiarly manufacturing activities may be undertaken at a depot place ( with certain conditions by the department.)

However, the manufacturing application can also be rejected by the department, if not satisfied for any reasons.

[KASTURI SETHI]

The department will never allow manufacturing activity in Depot. Both depot and factory have different purpose and different functions. Intermingling would lead to misuse and can lead to evasion of revenue.Separate registration for both would be in the interest of revenue. Such separation helps in safeguarding revenue..

AI Summary

Manufacturing activity in depots: generally prohibited; if operations amount to manufacture they require factory registration.
Manufacturing activity in a depot is generally not permitted; if depot operations constitute manufacture they must be registered as a factory for excise purposes. The department may permit activity only under conditions and retains discretion to refuse; separate registrations and functional separation are emphasised to prevent misuse and protect revenue.