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Excise query

Anup Gupta (Service) (52 Points)

15 June 2012

Dear All,

I have a query.

We are a manufacturer of goods "X", which is excisable and we maintain all our records......

Also we are trader of the same product and we are registered as trader also.

Suppose we had purchased this material from a manufacturer or a trader not liable to register in excise, and bring into our factory and immediately sell the same to some other party, now what would be the excise treatment & liability?

Suppose we don't bring the material into our factory premises than what would be the treatment.

Please let me have your guidelines.

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1 Replies

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 18 June 2012

A dealer liable to get registered himself are First and Second stage dealer. First stage dealer means, a dealer purchases goods directly from manufacturer, or from an importer. Second stage dealer means who purchases goods from First stage delaer. First and second stagge dealer buying excisable goods from Manufacturer/ importer/ First stage dealer and pass the credit to Manuracturer/ trader/ exporter. If you buy non excisable goods, there is no need to transfer the credit to others. You can sell the non excisable goods without duty subject to there is no manufacuture.