Goods sold by pvt ltd co to prop firm.

This query is : Resolved

subhash sharma (Querist)
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06 November 2013 ONE AJAY IMPEX PVT LTD MFG COMPANY HAS FOUR DIRECTOR A,B,C, & D.

COMPANY SELLS EXCISABLE GOODS AND CHARGE EXCISE TO RAJU ENTERPRISES FOR RS. 2.50 LACS IN WHICH A IS PROPRITOR.

RAJUN ENTERPRISES WHO IS TRADER AND IS NOT REGISTERED WITH EXCISE SELLS THESE GOODS TO AMAR CONSTRUCTION(NOT REGD WITH EXCISE) WITHOUT CHARGING EXCISE FOR RS. 3.00 LACS.

MY QUESTION IS :-

SINCE GOODS SOLD BY AJAY IMPEX PVT LTD TO RAJU ENTERPRISES IS VALID WHIL A IS DIRECTOR IN AJAY IMPEX PVT LTD AND IS PROPRITOR IN RAJU ENTERPRISES.

MY SECOND QUESTION IS : GOODS SOLD BY RAJU ENTERPRISE AT HIGHER PRICE IS VALID OR NOT.
CAN RAJU ENTERPRISES SELL GOODS WITHOUT OBTAINING EXCISE REGN.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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12 December 2013 Many companies do such clandestine deals.It can not be said as illegal,but certainly immoral.Here,the margin of profit is not wide enough to make a case on it.Excise is chargeable at the production poit only,not on succeeding sale points.No Excise registration is necessary for only traders of goods....mjk

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