can one unit in excise do labour job (make finish products ) and charge labour charges ?

[mahesh sanghani]

We are getting one product made by one SSI unit which makes ready products for brands and charges excise duty.

We are giving all raw material to make product .

Should the unit charge excise duty on making product for us ?

[KASTURI SETHI]

SSI unit is not eligible for SSI exemption if he manufactures the branded goods. Brand belonging to another person. CE duty is on manufacture and it makes no difference if goods are manufactured on labour basis or in your factory by employing workers. Either you or or job worker will pay duty.

[Himansu Sekhar]

Nicely explained sir

[Ganeshan Kalyani]

Thanks Sri Kasturi Sir for replying in lucid language. Thanks.

AI Summary

Excise duty on manufacture applies to job-work; branded goods made by an SSI unit cannot claim exemption. Excise duty attaches to manufacture irrespective of whether production is by a principal or a job-worker; an SSI unit making branded finished goods for another cannot claim SSI exemption merely on account of job-work, and the duty must be discharged by either the principal or the job-worker under excise law.