Sunil (Partner) (44 Points)
12 January 2015Dear Sir,
We are traders & have taken over a barge for dismantling and cutting and selling scrap so obtained to steel industries. Should we have to get ourselves registered under central excise, if so, as what ? as a Dealer or as a Manufacturer ? Please reply to my question immediately. For any further information to clarify me, please write to me.
R P Ananthakumar
(Sr. Officer - Central Excise/Cash)
(514 Points)
Replied 14 January 2015
Dear Mr Sunil
As per central excise cutting, sliting and policing etc are not amount to manufacturing activity. so there is no need to register with excise.
You can register as trader if you want to transfer the credit amount to your customer.
Apart from this, there is general exemption in central excise that sales turnover upto 1.50 crores you need not require to register with central excise.
Regards,
RP Ananthakumar.
Sunil
(Partner)
(44 Points)
Replied 14 January 2015
Dear Mr.Ananthkumar,
Thanks for your reply, but how can we pass on the credit as we do not get any invoice for purchase of scrap, we have already purchased the barge & have reduced the barge into scrap.
Can you please clarify on this. Also on a later date if dept issues us a SCN for not registering under manufacturer & demands excise duty, how should it be handled.
Pls revert Sir.
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