REUEST FOR CLARIFICATION ON TRADING ACTIVITY - REG

[Asked by Guest]

Dear sir,

 

We are manufacturers of various chemicals such as Caustic Soda,Chlorine,Hydrogen,HCL etc and clearing our goods to various customers by paying applicable excise duty. we have entered an agreement with our adjacent customer for supply of our finished product of chlorine to meet their raw material requirement as per the agreed price and take back their by product of Hcl at 1/3 price of our agreed  chlorine price.We are also manufacturing the same goods in our factory.

 

Under these circumstances,kindly clarify the following points in clearing the consignment.

 

1. As a manufacturer of similar product,can we take their product of HCL for further sale to our Customers.What are the steps to be taken to aviod  litigations with the dept. Can we issue our regular invoice for clearing the procured goods to our customers or we have to obtain seperate dealer registration for sale of procured goods to our customers to pass on the cenvat credit by issuing dealer invoice.If any price difference betweeen procurement and sale what steps to be taken for clearing the goods.

 

2.Under which rule we can procure the Similar goods for further sale without any process.

 

3. when the price is not finalised at the time of clerance of our chlorine  what is the procedure to be followed.

 

We request your goodselves, suitable clarification may kindly be given on the subject.

 

Regards,

K. Kasi Reddy,
Dy. General Manager - C/E
Sree Rayalaseema Alkalies and Allied Chemicals Ltd
40-304, 2nd Floor, K.J. Complex,
Bhagya Nagar,
KURNOOL - 518004 (A.P.)
Phone : 08518 - 221933 / 289600 / 28960
Fax     : 08518 - 226973 / 276631l

AI Summary

Trading of similar manufactured goods permitted with segregated records; use provisional assessment if price is not finalised.
Manufacturers may trade in identical products but should adopt safeguards: keep segregated stores, maintain a separate set of accounts and distinct invoices for trading activity, and inform the excise department to avoid duty disputes. If price is not finalised at clearance, employ the provisional assessment procedure applicable to recurring transactions to permit clearance pending final valuation.