APPLICABILITY OF EXCISE REGISTRATION

[BAL KRISHAN GARG]

Dear All Members ,

I have received a reply against my querry from Mr.Pradeep Khatri Ji and he had clarified that the basic exemption limit for registration is 150 Lacs .

My Querry is the client has both type of sale i.e. Manufacturing alongwith Trading also

My Query is whether the sale part of trading activity and scrap sale will be included in the calculation of basic limit for registration in excise ?

Please clarify the above issue .

 

Thanks to all

B.K.GARG

[YAGAY and SUN]

Replied through personal message facility.

[YAGAY and SUN]

In CCE v. Suyog Corporation (2004) 170 ELT 558 (CESTAT), manufacturing and trading activities were done from same premises.  It was held that value of Clearance of trading and manufacturing activity cannot be clubbed.

[rajkumar shukla]

Excise is on manufacturing.Trading can not be clubbed.

[CASeetharaman KC]

Trading cannot be clubbed with manufacturing however care must be taken that no other activity is undertaken which would amount to deemed manufacturing as provided in respective chapter headings. In some cases even unpacking would amount to manufacture

AI Summary

Excise registration: trading and scrap sales excluded from manufacturing turnover, but deemed manufacture must be included.
Excise registration depends on turnover from manufacturing clearances; pure trading sales and ordinary scrap need not be clubbed with manufacturing turnover for computing the registration threshold, but activities amounting to deemed manufacture (for example unpacking that transforms goods) must be treated as manufacture and included in excisable turnover.