TaxTMI 
TaxTMI 
Whether pulverization of sugar amounts to manufacture?
One dealer who is purchasing sugar from manufacturer who is charging excise duty and cess on his sales bill..and dealer is pulverising sugar and packing in the size of 50 and 100kg packs under its own brand and then selling it to other party who's using the same for making cookies and confectionery.
If we want to passed on the excise whether he needs to take registration as a first stage dealer?
And if he is taking registration as a manufacturer then what will be the rate of duty on pulverised sugar..
Please suggest..
Applicability of excise on pulverisation of sugar
02 Mar 2016 
5 Replies 
1670 Views Asked by
Manufacture: pulverisation of refined sugar is not manufacture; registration only required to pass on Cenvat credit.
Pulverisation of duty-paid refined sugar that does not alter its essential character is not manufacture and does not attract excise. Registration as a first stage dealer or as a manufacturer is required only if the dealer intends to pass on Cenvat credit. Activities that render goods marketable, such as affixing MRP, are treated as manufacturing processes and are expected to be performed by the manufacturer in the factory; deemed manufacture rules apply to limited goods in the Third Schedule. (AI Summary)
Pulverisation of duty-paid refined sugar that does not alter its essential character is not manufacture and does not attract excise. Registration as a first stage dealer or as a manufacturer is required only if the dealer intends to pass on Cenvat credit. Activities that render goods marketable, such as affixing MRP, are treated as manufacturing processes and are expected to be performed by the manufacturer in the factory; deemed manufacture rules apply to limited goods in the Third Schedule. (AI Summary)