Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Trading Activity

Sujoy Bhattacharya (service) (26 Points)

13 February 2008

we are registered with Central Excise department for manufacturing activity of steel product.We have also some trading activity of same product. now my question is whether we need any permission for doing such trading activity of same product if yes please reply by mentioning the section/rule where it has been stated so. If no permission is required then also state the section/rule where it has been stated so and also the procedure for doing such trading activity..

Reply
Follow
Share

5 Replies

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 13 February 2008

Refer Sec 6 of CEA, point no. (b) Registeration required for wholesale purchase or sale or storage of Goods. It must be mentioned in Form A-1 and also in registeration Certificate.

Upgrade to CAclubindia Pro. Subscribe Now!

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 13 February 2008

Sujoy Bhattacharya (service) (26 Points)
Replied 18 February 2008

you have send some reply which is only "a" please reply properly.

Vijay K. Agrawal (Service) (608 Points)
Replied 20 February 2008

Dear Sujoy, i am sending you the excerpt from Rule 9 of the central excise rule which ask for mandaoty registration for trade, manufacture etc. Rule 9. Registration.- (1) Every person, who produces, manufactures, carries on trade, holds private store-room or warehouse or otherwise uses excisable goods, shall get registered: Provided that a registration obtained under rule 174 of the Central Excise Rules, 1944 or rule 9 of the Central Excise (No.2) Rules, 2001 shall be deemed to be as valid as the registration made under this sub-rule for the purpose of these rules. (2) The Board may by notification and subject to such conditions or limitations as may be specified in such notification, specify person or class of persons who may not require such registration. (3) The registration under sub-rule (1) shall be subject to such conditions, safeguards and procedure as may be specified by notification by the Board.

OFFICESELVA (Service) (515 Points)
Replied 22 February 2008

Generally manufacturing and trading is not permitted in the same premises. Trading can be done if it different product say size or grade is different. However, if you have seperate entry and exit for for manufacturing premises and dealer premises you may get registration.