we are manufacturer of auto components and holding registration number of excise,we are purchase some fixture from unregistered dealer in excise we want to sale out the above fixture without excise duty it is right or wrong as per excise rule.
08 October 2009
To levy excise duty there should be manufature. In this case there is no manufacture so levy of excise duty will not arise at all.
Since you have purchased from unregistered dealer he can't levy excise duty on you.
This is a case of removing goods as such. As per Cenvat Credit Rules when goods are removed as such you have to pay an amount equal to cenvat credit availed. As per this case the question of payment of an amount equal to cenvat avalied does not arise.
Finally you can remove/sale the goods with out any excise duty liability.
CAclubindia
