Selling of trading goods from manufacture.

[ASHOK AMIN]

Dear Sir,

This issue is in respect of the trading goods being sold from manufacturing unit.

We had imported an item iron exchange resin (25 kgs pack) for our trading unit which was being billed to one of our sister concern unit who were registered under SSI. Our sister concern unit would sell the goods from their unit after repacking it in bottles. Now, the sister concern unit had shut down and merged with our manufacturing unit. Please note our trading unit and manufacturing unit are in the same place with different entries. Now, can we raise a bill from our trading unit to the manufacturing unit so that we can send from our manufacturing unit to our clients after repacking. Here also please note our trading unit is not registered under excise whereas, the manufacturing unit is registered. Our factory and sister concern are situated in the same state. Will there be any problem if from excise point of view. We require this reply on a very urgent basis.

AI Summary

Manufacture definition: repacking ion-exchange resin does not constitute manufacture, but dealer registration and premise separation required.
Repacking imported ion-exchange resin into bottles is packing and does not constitute manufacture because the resin falls under the relevant tariff heading and is outside the Third Schedule. If the SSI trading unit is merged and assets taken over, trading may continue subject to that manufacture-definition. To avail CVD and SAD credit on the imported resin the entity must register as a first stage dealer. Trading conducted at the same premises as manufacturing requires distinct physical demarcation and a separate entrance for excise compliance.