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Excise Duty Chargabilty

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IF CONCERN IS BOTH MANUFACTURING AND TRADING CONCERN HOW IS THE EXCISE DUTY CHARGED ....i,e ; is it only on the manufacturing portion or both Trading & Manufacturing.....kindly help along with relevant refernce to provsions of the Act or Case Laws 

 

Thank You

Siddarth Jain

Replies (3)

You have to maintain separate books of record for input purchased and used in manufacturing activities and those items which are purchased and sold as it is (i.e. trading activity)...

Further, you shall not avail input CCR of such items which are sold in trading activity...

You will charged to Excise duty on only those products which are being manufactured by you..., subject to other conditions....

Basically trading and manufacturing of the same goods in the same premises is not permitted under Central Excise law. If the goods meant for trading and manufacturing are different, then they have to separately obtain the registrations for each activity as dealer and manufacturer, so that they can pass on the cenvat credit to the ultimate customers.

yes arvind is right


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