Hi Ambesh,
Still I am not clear about your procedure.
If it is a trading item then you must have same item in AP and AR, Right ?
Then if you are booking your AP with excise then how come you select non-cenvat tax in AR ?
If your item is marked as excisable in Item master then system will not allow you to take VAT code alone in any marketing document.
I think you should consult with your bookkeeper regarding the complete procedure.
Thanks,
Harshal