Procuder for Trading purchases

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K.MASTHAN BAVA (Querist)
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29 June 2009 We are Cement Manufacturers having 5 branches in south india (Only Plant is having Excise registration and Branches are not having Excise registration). We are selling Cement directly to the customers and sending to branches on stock transfer basic by paying excise duty.

Now we want to Import Different kind of Cement and sell to customers. This imported Cement may go directly to any of our branch or to plant and sold to customers. But we are not having excise registration in branches, how to sale directly from branches? what Excise formalities to be follod. Can we take cenvat credit on Imported cement.

Please clarify the same.

regards
K.MASTHAN BAVA
ZUARI CEMENT LTD

Rajesh Kumar

Rajesh Kumar (Expert)
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30 June 2009 Your branches appears to be depot. If you want to sell goods from depot and pass on cenvat credit, depot are required to be registered as dealer. As there are not many persons who can take cenvat credit on cement (builders etc. could take but normally they take rebate in value), no need to get the depot registered.
Regarding the imported cement, you are not going to use it in manufacture, hence there is no question of cenvat credit. You can sell it on any depot if you dont want to pass on credit. Further, it is not manufactured by you, you dont need to pay any excise duty on this item.
Yes, at the time of import you will be paying 4% SAD and at the time of sell you will be paying VAT. In that case 4% SAD paid is refundable. If you plan this, you will get this refund.