TaxTMI 
TaxTMI 
We are in manufacturing of chemicals and hold central excise registration. We also undertake trading activities in chemicals. We are in short of space for trading activities, so we are planning to shift trading in our manufacturing premises where we have ample space, with proper separate entrance and documentation. The trading activities will not be under excise. Kindly guide us in this matter and suggest a remedy with proper and valid answer.
Trading activities
17 Dec 2014 
9 Replies 
7362 Views Asked by
Trading activities from manufacturing premises require registration amendment and segregation; identical goods may trigger Commissioner permission.
Whether a manufacturer may carry out trading activities from manufacturing premises requires segregation of the trading area, separate documentation, and amendment of Central Excise registration via ACES, with division and range office verification. Where traded goods are identical to those manufactured, departmental guidance advises caution and some practitioners recommend obtaining the Commissioner's permission, though views differ on its mandatory legal requirement. (AI Summary)
Whether a manufacturer may carry out trading activities from manufacturing premises requires segregation of the trading area, separate documentation, and amendment of Central Excise registration via ACES, with division and range office verification. Where traded goods are identical to those manufactured, departmental guidance advises caution and some practitioners recommend obtaining the Commissioner's permission, though views differ on its mandatory legal requirement. (AI Summary)