Purchase of stock from bank as disposal of stock

This query is : Resolved 

29 August 2007 I have purchased stock at cost of Rs.4 Lakhs form a bank which had been seized by bank from one of the manufacturing company. Now, on these goods neither bank or company has paid any excise duty. I have taken delivery at the factory premises of the company. Weather I am liable to pay excise duty on it?

Now, I want to sell these goods to a firm in which I work as an employee. I as an individual not registered under Vat, Excise etc. My firm is registered under Vat, Excise etc. Weather my firm is liable to pay excise,vat to me on purchase of these goods? What are indirect tax implication on me & my firm?

16 September 2007 Dear Madam

When you mention first that you purchased the seized goods from a bank, it means you purchased in your individual capacity. Your (partnership) firm is not in picture.

If you sell as an individual, you can claim basic exemption under any indirect tax law respectively including state VAT. As long as there is no manufacturing is involved by you, no excise duty needs to be paid.

In this context I do not see the necessity of involving your partnership firm (Are you using the word Firm to refer a partnership firm or prop concern? Please clarify)

In any case VAT Act gives basic exemption per person (dealer).

25 September 2009 No need to pay excise.




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