Trading or removal as such

[Dalia Felix]

Hai, how can we distinguish between removal as such and trading by a manufacturer in excise? What are the criteria used? Any clarification issued by CBEC in this regard?

AI Summary

Clarification on 'Removal as Such' vs. Trading: Separate Registration Needed; Cenvat Credit Reversal per Rule 3(5) CCR Rules A forum participant inquired about distinguishing between 'removal as such' and trading by a manufacturer in the context of central excise. One response clarified that separate registration is required for manufacturers, dealers, and importers, with trading activities falling under dealer/importer registration. If raw materials are returned or sold due to unsuitability, it is considered 'removal as such,' requiring cenvat credit reversal under Rule 3(5) of CCR Rules. Another response advised maintaining separate accounts for 'as such' removal and trading, noting that 'as such' removal involves returning goods to the same unit, unlike trading.