Applicability of excise on pulverization of sugar
uttam jain
(Querist) 02 March 2016
This query is : Resolved
Whether pulverization of sugar amounts to manufacture?
One dealer who is purchasing sugar from manufacturer who is charging excise duty and cess on his sales bill..and dealer is pulverising sugar and packing in the size of 50 and 100kg packs under its own brand and then selling it to other party who's using the same for making cookies and confectionery.
If we want to passed on the excise whether he needs to take registration as a first stage dealer?
And if he is taking registration as a manufacturer then what will be the rate of duty on pulverised sugar..
Please suggest..
P. Venu
(Expert) 03 March 2016
Pulverisation does not amount to 'manufacture' as no new compound is produced unless, of course, there is a valid law which provides a different definition.
uttam jain
(Querist) 03 March 2016
Sir, i agree but the deemed defination includes packaging and labelling as manufacturing and the dealer is selling at a varied price means he is adding his margin while selling the product.
whether Dealer should register as a manufacturer or as a first stage dealer because primary motive is to transfer credit to the debtors.
Rajendra K Goyal
(Expert) 03 March 2016
Has the taxation authority decided it as manufacturing?
you should move to appeal to have clear verdict from the court.
uttam jain
(Querist) 03 March 2016
No sir, it is the first stage and we need to decide whether we should take registration or not.
Rajendra K Goyal
(Expert) 04 March 2016
Discuss in detail with your consultant after showing all related documents.
