08 July 2011
A registered manufacturer 'A' manufactures Product 'X' using raw materials 'Y' an 'Z'. All the three items X, Y and Z are chargeable to Excise Duty. 'A' is also interested in trading of 'Y' & 'Z'. Now my queries are: 1. Is 'A' required to take any specific permission or registration as Dealer with Excise Authorities for trading in Raw Material or can 'A' sell 'Y' & 'Z' showing it as removal as such. 2. Are separate stock record required to be maintained for trading and manufacturing stock of raw materials. 3. Are separate set of invoices necessary for removal of raw material as such. 4. Is the buyer eligible for cenvat credit on purchase of 'Y' & 'Z' sold by 'A'.
08 July 2011
to trade similer nature of goods in regular manner, such goods can not be brought inside the manufacturing premises, however the assessee has option in hand......
1) to get registered with excise as dealer for inputs and finish goods but the area of storage should be distinguished from manufacturing area.
or if its incidental then he can sell Y&Z by reversal of input credit on the basis of "as it is " condition. but he can not bring X into manufacturing premises. He can sale such goods in transit only.
2. delaer invoice and RG23D should be maintained by dealer.
3, for incidental clearance of raw materials no need to maintain seperate invoice, invoice for home consumption would suffice the purpose.
4. Yes buyer is eligible for input credit on the strength of invoice issued by A.
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