Excise duty benifit

[Subhash Komalwar]

Sir I have purchase MS Casing pipes from manufacturer and we have sold these pipes to another deartment and we have collected M-Vat from that department. can we take the benift of Excise duty from the manfufacturer or from the sold pipes.

[Ganeshan Kalyani]

Sir, you have purchased pipes from manufacturer and sold to ...? and are you a manufacturer or trader.... ? Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

Your query is not clear.

[KASTURI SETHI]

Sh.Komalwar Ji,

You have purchased and sold the goods. Goods are not in your possession. How can you take the benefit of Central Excise duty ? You can not. It appears to me that you are a manufacturer and have removed the goods as such. If it is so, you are required to reverse the amount of credit taken on those goods. Have you sold the goods on higher price ? Also reply to Sh. Ganeshan Kalyani's query so that a clear-cut reply could be posted. VAT is to be deposited with the State Govt. If you a trader, then why do you talk of Central Excise duty. If you are a trader, are you registered with the Central Excise department ?

[Suryanarayana Sathineni]

Dear Fri purpose end,

As stated by our learned friends, your query is not clear and in the absence of clarity, expressing our view will not serve the desired purpose.

To be very frank with you, I am assuming you might have done an in transit sale (E1 sale), in addition to the assumptions already stated.

Best Regards

Suryanarayana

AI Summary

Central excise benefit depends on trader vs manufacturer status and may require reversal of input credit or VAT compliance.
Entitlement to Central Excise benefit for purchased MS casing pipes hinges on whether the seller is a trader or the manufacturer, the registration status under Central Excise, and the transaction type (including possible in transit/E1 sale). Traders cannot claim or pass on excise benefit and must deposit VAT with the State. If the goods were removed by a manufacturer who availed credit, the manufacturer may need to reverse input credit or adjust duties on sale or inter departmental transfer.