Manufacture stocks sales on trading invoice

[Asked by Guest]

May be sale on trading invoice from manufacturing stock ? (as fuels,raw materials and any others)

[Ganeshan Kalyani]

Please elaborate your query.

We want to sale materialthrough trading A/Cwhile we have the stock in manufacturing A/C

i.e, are we eligible to sale the manufacturing stock through trading invoices

[KASTURI SETHI]

Query still incomplete. Whether the goods are excisable ? If so, first to pay Central Excise duty, if applicable and thereafter the second question ?

[Ganeshan Kalyani]

Can you give an example to make your query little bit clear.

Dear Sir,

Suppose we have a factory this name RR.Co.ltd with tin no 123......and same name with same tin no and same place also our a trading enterprises.Factory any material sale on manufacturing excise invoice (raw material,finish goods etc)

But Same factory materials may we sale on trading invoice while trading stock is nill.

Regards

Raman Kr. Jha

[Ganeshan Kalyani]

Trading means buying and selling of goods. It means they are not manufactured by you. If you wish manufactured goods to sell under trading invoice it would be not as per provision.

[Ganeshan Kalyani]

Just a curiosity, why to intend to do so. Rhetoric question.

[KASTURI SETHI]

Trading of goods from the premises registered with Central Excise department is subject to conditions. A manufacturer registered with Central Excise department for manufacture and clearance of excisable goods can deal in trading of the goods from the same premises but with special permission from the Commissioner. Excisable goods manufactured by him and trading goods are to be kept separate and must not be inter-mingled. Separate area/room/godown has to be earmarked for both. Separate identity of both kinds of goods has to be kept. Clearance of excisable goods manufactured in the same premises has a separate procedure and trading goods have separate procedure. Both invoice books and maintenance of account and records should be separate.

[Ganeshan Kalyani]

The query is clearly answered in lucid language. Thanks Sir.

Dear Experts yours views in the below subjects will be highly benefited to us,

I would like to state that we had established our unit at Jammu only because of the grant of the 100% exemption from payment of the duty of excise vide notification no. 56/2002 CE dated 14.11.2002. However consequent to the government withdrawing the said notification and restricting the benefit to 36% a writ petition challenging the above withdrawal was moved before the Hon’ble High Court of Jammu & Kashmir and the Hon’ble High court in the case of Reckitt Benckiser Vs. Union of India and Ors. (OWP No. 470/2008 pronounced on 23.12.2010) = 2010 (12) TMI 237 - JAMMU AND KASHMIR HIGH COURT held that withdrawing the benefit originally promised by Notification 56/2002 in the guise of such amending Notifications is hit by the principles of promissory estoppel. Consequently amending Notifications 19/2008-CE and 34/200/-CE have been quashed by the Hon’ble High Court. As the said judgment squarely governed our case and as the consequent benefits of the Hon’ble Court striking down the impugned notification were not forthcoming we have moved the Hon’ble High Court of Jammu & Kashmir challenging the amending notifications with consequential benefit of refund in term of notification No.56/2002-CE in Writ Petition no.___________. The said writ petition is pending disposal by the Hon’ble High Court of Jammu & Kashmir, Please advise how to get NOC from the excise department when our case is under pending with Humble court,As we had planned to close down the units surrender the excise registration.

[Ganeshan Kalyani]

Whether your exemption period is completed ? You can enjoy benefit upto the period you have alloted. Also refer Notification 1/2010 for reference. it may prove beneficial to you. Thanks.

Dear Sir,

Thanks for your kind reply as your goodself has mentioned to refer 1/2010 notification which talk about subtancial expantion ,We have no plan for continuing our business at jammu .Now my request we had paid 4 crores under protest to them by availing just 36% refund only but if the humble courts decide this on department favour ,we may need to pay them 1 crores .Now please advise how to comeout from this suituation and how we will get back our funds if the proceeding case is in our favour.

AI Summary

Sale of manufactured goods as trading sales requires segregation, separate records and prior administrative permission and excise compliance.
A manufacturer cannot treat goods produced in its manufacturing account as trading goods for issuance of trading invoices unless specific administrative permission is obtained; if goods are excisable, excise duty must be paid under the manufacturing clearance procedure. Trading from premises registered for manufacture is allowed only with the Commissioner's permission and requires strict physical segregation and separate identity of manufactured and trading stocks, plus distinct invoice books, accounts and adherence to separate clearance procedures.