28 January 2012
We are engage in manufacture and marketing of lubricating oil and greases. We would like to bought grease product from our vendors and store and clear from our manufacturing plant. The excise duty on our mrp will be paid by our vendor at the time delivering the product to our plant. The grease products and packs which we are going to purchase from our vendors are not manufactured our plant from where we want to store and deliver the product to different locations. The grease product which we going to bought from our vendors and the product which are manufactured in our plant are fallen under same chapter heading. We want to deliver the grease products to our depots/ customers which we have bought from our vendors without payment of excise duty as it has been already paid at the time of procurement based on our MRP. Now my questions are as follows:- (i) Do we require to get permission and approval from Excise department? (ii) Is it intimation need to provide to Excise department? (iii) Is it required to have separate godown for the above grease products? (iv) Can we use our same storage facility which has been meant for the product manufactured in our plant? (v) Is it require to have separate invoice/challans for the above while deliver the product to our depots/customer? (vi) Is it require to fulfill any conditions as per Sales Tax/VAT Act? (vii) Any other condition need to follow as per Excise Laws.
PLEASE ADVICE ME AS PER ABOVE QUESTION AS PER THE ORDER
29 January 2012
1st of all take precaution not to use the manufacturing unit for trading purpose.
2nd, if possible, then use seperate business identity for trading purpose,
realize a situation as below and then think about the consequences.
any officer of central excise visits your unit, and find the goods in stock are exceeding the quantity with RG-1(DSA), and initiate that such goods are unaccounted manufacturing from your own unit.
as the goods brought from outside are not covered with any excise invoice in your favor, and all balance documents are not at all honoured by excise.
trading of goods which are similer to your finished goods should be avoided in all cases.
CAclubindia
