Trading activity in mfg permises

[mk Jain]

We are manufacturer and want to trading in same premises. If we are not generate the excisable invoice of traded goods then no issue. But if we want to get separate registration of trading for pass on the excise then we can do the activity in same premises and common gate.

Rgds,

MJ

[KASTURI SETHI]

Permission is not granted for same product.

[Himansu Sekhar]

Whether you generate excisable invoice or not, if similar goods are traded , as per the supplementasry instructions, permission of the commissioner is required.

[KASTURI SETHI]

But practically permission is not granted by the Commissioner. Board's circular has no statutory force. It is discretion of Commissioner. No officer would like to take the risk. Had this facility been provided in the Act, Commissioner/department would have been bound to follow.

[KASTURI SETHI]

Supplementary instructions mean Board's circular though these are issued under Act.

[mk Jain]

Not for same product but need to pass on the excise to customer from trading license. It may be the part of BOM.

Rgds,

MJ

[KASTURI SETHI]

If trading goods and manufacturing goods are different, then there will be no problem in granting permission by the Commissioner.

AI Summary

Permission requirement for trading from manufacturing premises governs similar-product trading and needs Commissioner approval before operation.
Permission is required to trade goods from the same premises as manufacturing when traded goods are similar to manufactured goods; supplementary instructions/Board circulars require prior Commissioner approval and, despite lack of statutory force, Commissioners commonly refuse such permissions. If traded goods differ from manufactured products, permission is generally granted and a separate trading registration may be obtained to pass on excise.