central excise
Querist :
Anonymous
(Querist) 16 May 2011
This query is : Resolved
I raised the following query:
Ours is a service industry and registered under Service tax. As a part of providing service we use packing material. To save the packing material cost, we bought one corrugation manufacturing machine and making cartons ourselves by purchasing craft paper. While billing to our customers we do not charge anything separately for packing. Our service charges are inclusive of packing material cost. Hence we did not approach Central Excise department for any registration.
Now there is an objection from Central Excise department stating that it comes under manufacturing and we are supposed to comply with central excise formalities.
Please advice on the above.
Regards
N V Sudhakar
Madhava Law Office
(Expert) 17 June 2011
Dear Mr. N V Sudhakar,
You activity of making cartons amount to manufacture and hence is liable to levy of Central Excise Duty. However, you can claim the benefits of SSI exemption if your turnover of such carton does not exceed the prescribed limit.
In such case, you need not to register with Central Excise Department.
Regards
Mukesh Yadav
