service tax or excise duty on hi-seas sales and purchase

[Bharat patel]

Respected Sir

we are manufacturer with export and import material.

now my question is hi-seas activity is lying in our plant under import material..

excise auditor told me for service tax or excise duty on cost of hi-seas purchase.

so it is correct or not ? for above any tax.

thanking you in advance.

AI Summary

Clarification: No Service Tax or Excise Duty on High-Seas Sales; Trading Activities Exempt, Excise Not Applicable. A manufacturer involved in import and export activities inquires about the applicability of service tax or excise duty on high-seas sales and purchases. An excise auditor suggested that these taxes might apply to the cost of high-seas purchases. In response, it was clarified that trading activities are exempt from service tax, and excise duty is not applicable since the goods are sold on high seas. The goods are released by the customer upon payment of the appropriate customs duty.