Trading of finished goods by manufacturer

Excise duty is to be paid only on manufactured goods and not on trading of goods. If you are not manufacturing then u dont have to pay excise duty on that portion of goods. However, if the value of manufactured goods exceeds the exemption limit then u must pay excise duty. And here also only on that portion of goods which are manufactured by u and not on those which are only traded by u.

In case cenvat credit is being availed by the company on common input services then the provisions of rule 6 of the Cenvat Credit Rules, 2004 needs to be complied with.