We are registered assesee having Central Excise Reg for manufacturing and trading unit. we are moved to a new premise.Now both the manufacturing and trading unit are operating under same premise. Our jurisdictional superintendent has denied our reg on tthis ground. kindly provide the provisions relating to this kind of operation under central excise and also the penalty chargeable. How the CENVAT credit utilization will affect.?

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.