Permission of Factory stuffing for Trading Goods

[RAM SHARMA]

Dear Experts,

We are registered manufacturer and taken IEC with merchant exporter. Can we get Factory Stuffing permission from custom for trading goods. If yes please suggest any rule.

Thanks

[YAGAY andSUN]

You should get the clarification from the Department.  If you have trading license under C.E. Laws then you can get the factory stuffing permission.

[RAM SHARMA]

Can a Trader  make export sale ? We have no need to pass the cenvat credit because our product is enduser.

Thanks

[YAGAY andSUN]

_{Yes, Trader  can export the goods provided he should have the valid IEC.}

[RAM SHARMA]

We have valid IEC but we have not trading licence. Is it necessary to take trading licence for export the goods.

[YAGAY andSUN]

Yes.  You must also discuss this matter with your Tax Consultant and with Central Excise Department.

[YAGAY andSUN]

Yes. Trading activity can be done by a manufacturing unit but separate Registration under Rule 9 of the CE Rules, 2002. is required to be taken for the purpose. Trading activity should take place from a separate premises.  In case of identical goods, the permission of the Commissioner is required.

[RAM SHARMA]

We are not passing cenvat credit to our customers hence we have not applied Trading Licence. I think a Manufacturer can make trading sale without Trading Licence if he is not passing cenvat credit to our customers. Pl. advice.

 

AI Summary

Trading licence enables factory stuffing for exported trading goods, requiring separate registration and approvals before export. Manufacturers seeking factory stuffing permission for exported trading goods must hold a valid IEC and obtain a trading licence under central excise laws. Trading activity by a manufacturing unit requires separate registration, trading from distinct premises, and Commissioner's permission when the traded goods are identical to the manufacturer's products; departmental clarification and tax consultant advice are recommended.