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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 NOT MAINTAIN SEPERATE BOOKS OF ACCOUNT FOR EXCISABLE AND EXEMPT GOODS HENCE WE PAY 12.50 % FOR EXCISABLE PRODUCT AND 6% FOR EXEMPT GOODS UNDER RULE 6.FURTHER WE ALSO DO RR SALES OF RAW MATERIAL WHERE IN WE SELL THE GOODS IN TRANSIT WITHOUT RECEIPT OF M .....

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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 need not reverse 6% of the price of the raw material sold in transit. - Reply By KASTURI SETHI - The Reply = Sh.Bhavan Vora Ji, What it appears to me from your query:- 1. You account for the value of traded goods in your books of account. 2. You do .....

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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. So it cannot be called input removal 'as such' It is trading of goods and trading of goods is in the negative list and not taxable but 'exempted service'' for the purpose of reversal under Rule 6(3) of the Cenvat Credit Rules,200 .....

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