Trading or removal as such, Central Excise

[Dalia Felix]

Hai, how can we distinguish between removal as such and trading by a manufacturer in excise? What are the criteria used? Any clarification issued by CBEC in this regard?

Posts / Replies

[Mehul Pandya]

Separate Registration required for manufacturer, Dealer and Importer. Normal Trading activity should be followed under Dealer / Importer Registration. Where as raw material purchased for manufacturing purpose is not up to the mark or purchase return or sold to any other buyer will be called as Removed As such on which cenvat credit availed. Hence cenvat should be reversed under Rule 3(5) of CCR Rules. You may also refer Rule - 9 of Central Excise Rules, 2002.

[Arun Kumar Singh]

You should maintain the separate account for as such removal and trading activity. As such removal of goods will be return to the same unit and trading activity is different from as such removal.