Activity of Undertaking Packing and Affixing Brand Name amount to Manufacture: CESTAT [Read Order]

Affixing Brand Name - Taxscan

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the activity of undertaking packing and affixing brand name would amount to manufacture for the purpose of levying excise duty.

In the instant case, the appellants, M/s Vee Kay Enterprises Pvt. Ltd., are engaged in trading activities. During the course of search proceedings, the Department noticed that in the premises of the two appellants, the activity of packing and affixing of brand names on automobile parts were found to be taking place. Such parts, after packing were affixed with the brand names ‘VIKING’ or ‘VIZA’. The department held that the activity of undertaking packing and affixing the brand name can be treated as an activity of manufacture incurring the liability for payment of duty.

The Tribunal held that “the goods in question are automobile parts which are specified in the 3rd Schedule of the Central Excise Act. When read with Section 2 f (iii) of the Act, I find that this conclusion of the lower Authorities cannot be faulted with. In their respective statements, both the proprietors of the appellant firms have also admitted to the fact of packing as well as affixing the brand names. Hence I conclude that liability for the payment of Central Excise stands established against both the appellants.”

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