Excise Duty Applicable

[Rahul nathan]

Hello

We have registered for manufacture under central excise Act, we were procuring for cables & Transformer from our various suppliers, for the same material will be sales to our customers without any modification on cables & Transformers. In that case that material is applicable for Excise duty.

Pls advise to me.

AI Summary

Excise duty applicability for traded bought-out components requires CENVAT credit reversal and composite supply duty treatment.
If bought-out cables and transformers are merely resold and not manufactured by the registered manufacturer, excise duty does not apply to those sales; however, if CENVAT credit was availed on those inputs it must be reversed on sale. If such items are supplied as part of a composite excisable product invoiced together, duty applies to the composite supply and input credit follows their use in manufacture. Trading identical goods from manufacturing premises requires segregation of activities and permission from the commissioner.