Meaning of Manufacturer of excisable goods

What is Manufacturer of excisable goods

 

This post explains about Manufacturer of excisable goods.  

Manufacturer of excisable goods

According to Section 2(f) of Central Excise Act, 1944, the manufacturer includes:

  1. “A person who manufactures himself
  2. A person who gets the goods manufactured through hired labour
  3. A person who does not employ hired labour but still gets the manufacturing activity done from others under his direction control and supervision. In this case, although the person does not own a factory nor does the manufacturing process himself, but he is getting the goods manufactured from others under his direction control and supervision.”

 

The Supplier of Raw Material is Not Necessarily a Manufacturer

A person who has carried out the manufacturing process is treated as manufacturer, irrespective of whether the raw material is supplied by other person. At the same time, a person shall not be treated as a manufacturer merely because he is the owner of raw material or he has supplied raw material.

 

Brand Owner is Not Necessarily Manufacturer

Manufacturer is a person who has actually manufactured the goods. The owner of a brand does not necessarily manufacture goods himself as he might ask other person to manufacture goods and puts his brand.

 

Relationship is Important

  • If a person can control the method of doing the work of the other person then there is a principal – agent relationship.
  • If relationship is on principal-agent basis then the principal shall be manufacturer.
  • If the relationship between the supplier of raw material/owner of brand name and the person doing the process is on a principal to principal basis, then the person doing the manufacturing process shall be treated as a manufacturer.
  • In case of the manufacturer being a fake unit, the raw material supplier or the brand owner shall be treated as the manufacturer.
  • ·

The information on Manufacturer of excisable goods is detailed above.   Comment below your thoughts on Manufacturer of excisable goods

 


Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers