Manufacturer and trader

This query is : Resolved

Raghavan (Querist)
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13 December 2013 One of my client is having Pvt ltd company and registered under excise and collecting excise duty also.

Now he is desiring to trade some of the goods and wish to have a separate premises for the trading goods does he need to collect excise duty on the trading items or not ?

And will continue to collect the excise duty on the manufactured goods.

Can he do it ? Kindly give me the section and the rule under the excise

AJITHKUMAR M

AJITHKUMAR M (Expert)
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13 December 2013 Dear friend,

1. Presuming that your client is going to trade in the excisable goods purchased from others on which appropriate duty is paid by the manufacturer and if they want to pass on the duty paid by the manufacturer, then he has to get himself registered with the department as dealer. If they do not want to issue cenvatable invoices, registration is not necessary.

2. If the goods are traded without subjecting any activity amounting to manufacture, then there is no duty liability on it.