Payment of duty and then availing credit

[chaganti srinivas]

Dear Sirs, 1) Is there any provision for transfering the finished goods on payment of duty from one registered premises to another registered premises on payment of duty and avail credit on the second unit for re-sale from there at higher price.

[Rama Krishana]

Credit is not allowed in case of trading of goods. In case of trading, you can pass on the duty. In case the goods are sold by the other unit of the same manufacturer, duty is to paid on the higher sale price on which the goods are being sold actually. So plan carefully in advance otherwise you will be at loss.

AI Summary

Clarification: No credit for trading goods under Central Excise; duty must align with actual higher sale price. A participant inquired about transferring finished goods between registered premises with duty payment and availing credit at the second unit for resale at a higher price under Central Excise regulations. The response clarified that credit is not permissible for trading goods. Instead, duty can be passed on, and if the goods are sold by another unit of the same manufacturer, duty must be paid on the actual higher sale price. Proper planning is advised to avoid financial loss.