AVAILMENT OF CENVAT CREDIT, Central Excise

[SURYAKANT MITHBAVKAR]

We are manufacture of pharmaceutical machinery registered under Excise Act.

we have place order to our supplier who is not registered under Excise Act. In same order supplier want to procure some excisable goods from dealer wherein our suppliers role comes second stage dealer whether we can avail this credit or not.

for details I will give you following examples

 

A ==  Manufacture of  Material (Raw Materials)

B== Dealer ( who is procure materials from A and issued of Invoice under Rule 11 of C.E. Rule) showing Buyer is C and  consignee is D

C== Supplier  (To whom we have issued purchase order for material and not registered   under Excise Act.)

D== Ourselves (Mfg. of Final Products and want to take cenvat credit of Raw material)

Pl. Advice

Posts / Replies

[NEERAJ KUMAR, RANCHI]

In my view if the dealer "B" is registered under central excise as dealer and he issues central excise invoice mentioning your name as consignee, there should be no problem in availing cenvat credit by you. Please refer to CBEC Circular No. 96/7/95-CX dated 13.2.95. Also refer to case of CCE Vs Balaji Iron (2008 (1) TMI 796 - CESTAT, BANGALORE) = (2009) 236 ELT 595 (CESTAT)  . Here "C" can issue a commercial invoice to You that is "D".

[r.rajkumar kumar]

YES  SINCE A PAD EXCISE DUTY AND B PASSED ON TO  C AND C PASSEDON TO D  WHO IS REGISRTRED IN EXCISE AND THE INPUT IS NOT AVAILED BY ANYBODY D  CAN TAKE IT AS INPUT

EVEN THOUGH C IS NOT REGISTRED. TKW