Manufacturer Registration

[Vivek Gupta]

A new start up company wishes to undertake manufacturing activity on job work basis. Kindly clarify whether :

1. Can it be registered as a first stage dealer.

2. If it has to be registered as a manufacturer only, then is it compulsory to have a manufacturing set up i.e plant and machinery etc as it will get manufacturing done on job work basis.

AI Summary

Manufacturer registration requirement: turnover above threshold triggers mandatory manufacturer registration and installation of machinery; job work allowed pre-threshold.
Job work can be performed without Central Excise registration under small scale notifications until the unit's turnover remains below the statutory threshold; once turnover exceeds the threshold, the entity must register as a manufacturer and maintain plant and machinery. Some processes may be outsourced, but machinery and other factors are required for premises to qualify as a factory under the statutory definition. If the job worker or another person is liable to pay duty, registration obligations attach to the person responsible for duty payment.