purchase and sell finished product

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G.NAGARAJA RAO (Querist)

12 June 2010 Dear sir,
Ours is a Manufacturing unit. Due to some limitations we want to buy the material(final product) from an excisable manufacturing unit and sell to our customer.Can we avail cenvat credit on this and charge cenvat to the customer. This is not the input for our manufacturing. this is the final product.
Kindly give a suggesion.

Regards.

Kishor Darole

Kishor Darole (Expert)

14 June 2010 Hi,
Buying F.G. Material and selling to Customer is Trading Activity. To start with, you have to get Excise Registration as a "Trader" from Excise, Maintain RG-23 D Register for Receipt and Sale. Tax Invoice will show receipt details and duty availed at bottom and at top said duty will be passed on though the Rates are different.i.e. Equal to Reverse.
Submit Quertlery Return to Excise.

OR to aviod this, Proove to amounts to manufacture, account in RG-1 & sale it..

Hope this will clear to you.

Regards
Kishor

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