Sale of goods by manufacturer

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Dear All,

A manufacturer is registered under Excise Act & files the return ER-1.He  dispatches goods by depositing amount in the PLA & is not availing CENVAT Credit since it is blocked by dept. Now he has got some order from builder who has not taken Excise No but has taken TIN NO.In this context my question is that whether the manufacturer can sell the materials without charging Excise duty from that unregistered builder? If so then how it can be shown in ER-1?

Kindly give the suitable clarification for the same with apprpriate rules under the Act.

Thanks.

Replies (2)

Plese provide me the following information.

1) What is your final product (FG)

2) What are the inputs (Raw Material) your procuring to procuce final product.

3) Why your not availing CENVAT Credit and Why it has been blocked by Dept?

Incase if your product falling under First and second schedule of CETA 1985, you need charge excise duty, if the following conditions are satisfied.

1) your final product should not be exempted or should not NIl rate of duty, by any notifcaton or cirular by CBEC.

2) you must cross the SSI exemption limit. (there is  optional)

3) If you are not enjoying any TAX exemption scheme notify by CBEC and other concern authority.

Regards

Kumar


 

 

Regards

Kumar

 

 

please elaborate your question.
Builder is no concern with levying and collecting any amount of excise duty.

As per sec 3 , BED, SED is leviable and collected as per rules CER 2002 at the rates mentioned in CETA 1985 on goods manufacturing in India.(excluding SEZ)

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