Manufacturer is a person who does the ativities of manufacture

It also includes

A person who employs hired labor in production of excisable goods

and A person who engages in manufacture on his own account


Whether Raw Material Supplier is a Manufacturer?

Merely by supplying the raw material, the supplier thereof cannot be construed as the manufacturer



M/s. Papadwala supplies raw material to several household ladies to make papads.

These ladies make papads at their homes and supply the same to M/s. Papadwala.

M/s.Papadwala does not supervise the ladies


Is M/s. Papadwala a manufacturer?

No, as he does not supervise and control the activities of the ladies who make the papads 


Exam Questions

Question 5

A trader of steel articles purchases steel bars of 10 meters. He cuts the bars as per
requirements of customer and supplies the cut bars to them. He seeks clarification whether
he will be liable to pay excise duty on the cut bars sold by him.

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.