Manufacture will do Trading

[MUNIRAJ SRINIVASAN]

one my client has doing manufacturing of automobile components he has to do trading of excise able goods ( example buying AV ₹ 100 BED 12.5 and selling 120 ) how much excise duty he to pay kindly explain legal provision of central excise

[BHUWAN BHATT]

In your case he has to amend his registration by adding as Trader (1st stage dealer) in his registration certificate,

now online application is to be submitted for amendment in registration refer circular No. 7/2015-Central Excise (N.T.) dated 1st March 2015.

after registration he can issue cenvetable invoices for trading goods and ED Credit can be availed by purchases if it is an input for him.

AI Summary

Registration amendment: manufacturer must add trader status to issue cenvatable invoices and claim excise credit via online amendment under circular Manufacturer engaging in trading of excisable goods must amend registration to add trader status by submitting the prescribed online application under the cited circular; after amendment he may issue cenvatable invoices for traded goods and avail excise duty credit on purchases if those purchases qualify as inputs for his manufacturing operations.