Goods themselves cannot pay duty so the person who create the taxable
event must discharge the liability which he had created. The liability
to pay tax excise duty is always on the manufacturer or producer if
goods. There are three types of parties who can be considered as
manufacturers-
- Those who personally manufacture the goods in question
- Those who get the goods manufactured by employing hired labour
- Those who get the goods manufactured by other parties
The following have been held to be real manufacturers :
- In case where the factories are leased out, duty liability is on
the lessee as he is the person who actually manufactures the said
goods
- When goods are manufactured from others by supplying raw
material, the duty liability will rest on the person who actually
carried out the manufacturing activity and not on the person who
supplied the material.
- In the manufacturer is a mere dummy of the customer or supplier
of raw material, then the goods are said to be manufactured on
behalf of the customers / suppliers and the latter is liable to
duty.
SENSEX
Prev
Close
