Excise

Querist : Anonymous (Querist) 17 September 2010 This query is : Resolved
One of my client import goods from foreign by paying custom ( he is having IEC code). After receiving the goods in India, he affixes his sticker/logo on the goods and sale in the India market. Whether this process leads to manufacturing activity or he is treated as trader. How the excise libility occours in his case.

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C M Sharma (Expert) 17 September 2010
It is not clear if the goods imported are in retail packing or in bulk packing.

However, if in retail packing,

Firstly the import regulations require that the MRP Labels are affixed or these are affixed before clearances through Customs.

Secondly, Definition under Section 2(f)(iii) includes labeling or relabeling as activity under manufacture.

The importer can avail of CENVAT Credit and thereafter pay the excise duty by following excise rules.

R.Ramachandran (Expert) 17 September 2010
Dear Anonymous,
On import of goods which require MRP labels, theMRP labels can be affixed prior to clearance.
The Basic Customs Duty and SAD has to be paid on the basis of transaction value, while the CVD has to be paid ont he MRP value.
Having said this, your query is since the process of affixing MRP label amounts to manufacture in certain cases, whether the same would be liable to Excise Duty separately.
In this regard, it is to be stated that the Tribunal has held that no excise duty is payable. Refer 2010-TIOL-270-CESTAT-MUM.