Trading activities are also done in the same premises

[sankunni krishnan]

My clients are registered with central excise for manufacturing excisable goods.They are availing Cenvat Credit also.They are importing raw materials for own use in the manufacturing activities and for trading ie for resale also.They are not registered as dealers. They are not availing any Cenvat credit on goods imported for trading.Of course the goods are kept seperately as they are exclusively for trading.

Kindly let me have your expert openion citing Central Excise/Cenvat rules and case laws if any to confirm that they are not doing anything wrong against law.

[Snehal Kulkarni]

In our opinion you must take the First Stage Dealer Registration separately by assigning a seperate Lock and Key Area in the existing Registered Premises.

For receipt and sale, please maintain the D-3 Register and raise the Invoice.

This will made the transaction easily and also help you to reduce the cost as of now, as understood, you are not availing the Cenvat Credit on Trading Goods and not passing the Cenvat to the buyer.

 

AI Summary

Dealer registration required to segregate trading stock, maintain D-3 records and issue invoices to ensure excise compliance.
Obligations include obtaining First Stage Dealer Registration, allocating a separate lock-and-key area for trading stock within the excise-registered premises, maintaining the D-3 register for receipt and sale of trading goods, and issuing invoices; these measures segregate trading stock from manufacturing inputs and ensure excise compliance where Cenvat credit is not claimed on goods held for resale.