regarding excise duty

[SANJEET SINGH]

Sir,

If the new manufacturer affix its MRP on the product, Is the manufacturer needed to register with Central Excise and pay the excise duty.

Please guide me

Sanjeet Singh

Advocate

[KASTURI SETHI]

Affixing label of MRP on excisable goods amounts to manufacture. However, you are eligible for SSI exemption of ₹ 1.50 crore, if your product is covered under under Notification No.8/2003-CE as amended. Also go through the following circular:-

Textiles and readymade garments - Levy of Excise duty on readymade garments and made up articles of textiles bearing brand name or sold under a brand name having retail sale price of ₹ 1,000 or more - Clarification

Circular No. 1031/19/2016-CX, dated 14-6-2016

[Rajagopalan Ranganathan]

Sir,

A manufacturer of excisable goods shall get himself registered under Section 6 of Central Excise Act, 1944 read with rule 9 of Central Excise rules, 2002 and with Notification No. 35/2001-C.E. (N.T.) dated 26.6.2001 as amended. This is the general rule. I am not aware of the excisable goods manufactured by you.

Normally if the total turnover of excisable goods manufactured during previous financial year is 90% of SSI exemption limit of ₹ 1.5 Crores such manufacturers are not required to take registration. Similarly manufacturers of those excisable goods which are unconditionally exempted are also need not take registration (Example: - ready made garments whose retail sale price is less than ₹ 1000/-). In respect of excisable goods Notified under Section 4A of Central Excise Act, 1944 printing MRP on the product or alternation of the MRP already printed will amount to manufacture.

In certain chapters of Central Excise Tariff it is stipulated that "labeling or relabeling the containers or packaging from bulk packs to retails packs or adoption of any other treatment to render the product marketable to consumer shall amount to "manufacture". Printing MRP or altering the MRP will come under " adoption of any other treatment to render the product marketable". Therefore you have to take registration.

 

AI Summary

Affixing retail price label amounts to manufacture; registration and excise obligations apply, subject to small scale exemptions.
Affixing or altering the retail sale price on excisable goods is treated as an act of manufacture where tariff entries or notifications treat labeling, relabeling, repacking or other treatments to render goods marketable as manufacture; such acts ordinarily require central excise registration and attract excise liability, subject to available small scale manufacturer exemptions and unconditionally exempt goods.