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

[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 ?

Posts / Replies

[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 Sha]

Nicely explained sir

[Ganeshan Kalyani]

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