TRADING IN MANUFACTURER UNIT

[Guest]

Dear sir,

My query is as below.

we are manufacturer of industries filters & provide also service/repair. we are also trade (not manufacturer) filter cartridge & filter bag in same ECC no/premises but shown in RG-1 as manufacturing.

please advise, we have reverse any duty. also suggest us about any RULE or notification. if we have to reverse any duty, what is the formula. any problem occur at the time of excise audit form department.

[KASTURI SETHI]

Sh.Snehal Patel Ji,

From your query, it appears that your firm is registered with the department in the same factory premises as

1. A manufacturer of excisable goods

2. A dealer (trader) of excisable goods

3. A Service Provider under the category of 'Management, Repair and Maintenance".

You will have to keep separate room/godown for goods to be traded. How can you show duty paid trading goods in RG.I ?. A registered dealer maintains RG 23 D register for duty paid goods and a manufacturer maintains RG.I register. You are mixing both which is hotchpotch.

Visit the office of your jurisdictional Range officer and seek solution from the officer in order to avoid any complication in future. In my view, this is the best option.

[Ganeshan Kalyani]

Ms. I agree with Sri Kasturi Sir's advise. The department will help you out if you upfront ask for advise. If you are not comfortable then you may seek support of the experts in this Forum. Thanks.

AI Summary

Recordkeeping obligations require separate storage and distinct RG-1 and RG-23D registers to segregate manufactured and traded goods. Maintain separate physical storage and distinct registers for traded duty-paid goods and manufactured goods: traded goods should be recorded in RG-23D and manufactured goods in RG-1. Mixing entries or showing duty-paid trading goods in RG-1 is improper and may cause complications at the time of excise audit; consult the jurisdictional range officer to regularise arrangements.