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PAYMENT OF 6% DUTY ON TRADING ACTIVITY

Central Excise - Started By: - BHAVAN VORA - Dated:- 3-7-2016 Last Replied Date:- 6-7-2016 - WE ARE A COMPANY REGISTERED UNDER EXCISE AND ARE INVOLVED IN PROCESSING OF EXCISABLE GOODS AND EXEMPTED GOODS AND ALSO INTO TRADING OF RAW MATERIALS.WE DO NO .....

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ATERIAL AT OUR END RESULTANT WE DO NOT TAKE CENVAT CREDIT AND DO NOT CHARGE CENVAT CREDIT. DURING EXCISE AUDIT IT HAS BEEN PINTED OUT BY THE AUDITOR THAT WE NEED TO PAY 6% OF THE VALUE OF TRADING SALES.PLEASE GUIDE AS WE ARE NOT TAKING ANY CENVAT CRE .....

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ly By Rajagopalan Ranganathan - The Reply = Sir, You have stated that the raw materials are sold in transit without availing the cenvat credit of duty paid on the raw material. Since you are not availing the credit under Cenvat Credit Rules, 2004 you .....

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not take credit but sell the raw material/trading goods in transit. Hence it is not removal as such. It is trading of goods is in the negative list of services under Section 66(D(e) of the Finance Act, 1994.Hence it is exempted service under Rule 2 ( .....

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ts are found of poor quality or for any other reason, are rejected and credit already taken is reversed at the time of removal as such.Here is not that case. Inputs are not allowed to be entered in the premises of the factory and sold out in transit. .....

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4. In view of above, in my view, the Audit is right and reversal @ 6% of the value of exempted service is required. - Reply By KASTURI SETHI - The Reply = In continuation of my reply dated 3.7.2016, it is further opined that just as non-excisable goo .....

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cted the lapse from books of accounts. You may have not allowed the raw material into the premises by way of sale in transit but in the accounts books inputs have entered into your premises irrespective of the issue that whether you have taken input .....

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