Duty paid goods sold from rented godown

[SHIVKUMAR SHARMA]

Dear Experts

One of my Friend manufacturing dutiable goods & registered with central excise deptt.He has taken a Godown on rent in the same city in Gujarat & he cleared the goods to his rented Godown after payment of Excise duty.he want to do the business from same name.(Factory /Rented Godown).He cleared the goods from the factory to Godown in bulk quantity & sale the goods from Godown in small qty. to Different customers in city.Please give your opinion on the following issue.

1. He can take the Central excise registration for same name of manufacturer & First Stage dealer.

2.There is any other way for him to do business without getting any central excise registration for First stage dealer.

Thanks in Advance.

[Rajagopalan Ranganathan]

Sir,

Your friend has to take registration as 'first stage dealer' only if he wishes to pass on the cenvat duty paid on the goods dealt with by him by issuing cenvatable invoices. Otherwise he need not take registration. He can sell the goods from the duty paid godown under commercial invoices.

[Ganeshan Kalyani]

Additional task of maintaining books at depot. I

AI Summary

First stage dealer registration required only if issuing cenvatable invoices; otherwise sales from duty paid godown may proceed under commercial invoices. Registration as a first stage dealer is required only if the dealer intends to pass on the excise duty by issuing cenvatable invoices; otherwise goods cleared to and sold from a duty paid rented godown may be sold under commercial invoices without separate first stage dealer registration, subject to maintaining depot books and records.