We are manufactures and dealers having separate registration in Central Excise. As part of our company's expansion policy our office has been shifted to a new premise. Both the manufacturing and trading unit are now come under the premise. Superintendent of Central Excise has denied our registration upon the fact that both the units are under same premise. Kindly provide us with provisions relating to operating trading unit and manufacturing unit under same premise. Also please provide the various penalty imposing upon such operation. Utility of Cenvat Credit on such operations

In Central Excise registration for the premises of operation. Hence same premises can not be used for two operations like manufacturing and trading. the premises should be separated for respective operations and applied for registation separetely. Normally general penalty clause is applied. Cenvat is for manufacturing and hence not eligible for trade activities. Credit is eligible only for inputs used for manufacturing excisable goods.