Trading Activity

[Laxmaiah Vanamamula]

Dear sir,

we have Manufuturing unit, we have purchased  some CPVC Fittings (boughtout)  with Tax invoice

we sold above materials to customers(same fittings)

we ( our company) eligible to deal this Trading activity ? (can we take any permission or registration from Excise  Dept), please clarify

 Thanking you

AI Summary

CENVAT credit: passing credit on traded bought out goods requires dealer registration; trading from factory has conditional rules.
A manufacturer may trade duty paid bought out goods from factory premises without prior permission where identical goods are not manufactured in house, but must inform the excise authority. Passing on CENVAT credit on such trading invoices requires dealer registration. Bought out parts incorporated into manufactured goods are treated as part of the manufacture and their value is includible in total turnover, affecting excise accounting and credit treatment.