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Excise duty on goods leaving service centres of the company

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This query is : Resolved

Sagnik Sanyal (Querist)

19 September 2012 Dear Sir/Ma'am,
Our company buys electronic goods from different manufacturing companies & sells them under its own brand. It DOES NOT PAY THE EXCISE DUTY in respect of those manufactured goods. Thereafter, when the goods are returned back as defective goods they are sent to a SERVICE CENTER OWNED BY OUR OWN COMPANY (& not the manufacturing company) where they are repaired & sent back to the dealers for selling them back in the market. In this respect kindly explain to me that :-

Will we be liable to pay excise duty on those goods which leaves our service station after being rectified ?

Can we take CENVAT credit in respect of those electrical products which comes inside our service station ?

Regards,
Sagnik Sanyal

Arun Kumar Singh

Arun Kumar Singh (Expert)

19 September 2012 Depend upon that your activity is amounts to manufacture or not. If activity amounts to manufacture then you can pay the duty and avail cenvat credit on input or input services.

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