Excise Duty against Job Work / Lease based manufacturing facility

[Asked by Guest]

Dear Sir,

I am interested to start manufacturing food colour from one of the manufacturer based on monthly rent basis. I am showing it as a Job work because that unit will manufacture the product only for my company. I will procure all the raw material and suply it to them . they only use facility and manpower to convert it to finished product.

I want to know, what kind of license required to manufacture such product. Also who will pay the excise duty agaist process. As per SSI unit, can i get benefit of 150 lack limit.

Thanks

Sachin

AI Summary

Excise duty on job work: principal liable for final duty unless agreement assigns payment to job worker; registration required.
Manufacture through a third party job worker requires Central Excise registration and may attract SSI exemption at the principal manufacturer level subject to the statutory threshold. Job work is governed by the job work notification framework; exemption on job work is admissible if the principal manufacturer pays duty on the final product, although the job worker may pay duty by agreement. The principal manufacturer must file intimation with the jurisdictional assessing officer of the job worker's premises.