Cenvat reversal on trading activity

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2014 Dear experts,
we have 2 excise registration, one as dealer and other for manufacturing. We are engaged in both activities. we files the separate return as per excise reg no.we have the SAP system installed wherein we have kept the separate plants for trading and manufacturing. need less to say we donot take the input credit of input for purchases in trading plant and do not charges the duty on sales.
all the excise related ledger accounts e.g. input credit a/c, excise duty payable a/c, maintained relates to manufacturing activities.
Whether we need to reverse the cenvat credit for trading activity carried on ?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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27 March 2014 Trader can only pass the excise duty to our client can not take the cenvat credit. If you have taken the cenvat credit in the part of trading activity then you should reverse the same. you should consult with any professional.