As per above subject. and definition of 1st Stage dealer and 2nd stage dealer in Excise are as per below :
1st Stage Dealer : Dealers who purchase the goods directly from the manufacturers, his depots or Agents are called the 1st Stage dealer.
2nd Stage Dealer : Dealers who purchase the goods from the above 1st Stage Dealers.
There is no provision or definition given for 3rd Stage Dealer in Excise.
Now My Query is Whether any dealer purchase goods from the 2nd Stage dealer and same credit is passing to end user customer who is also register in excise and availing the cenvat credit facility. In this case can the final user is eligible go get Cenvat credit as he is availing the credit from the 3rd Stage dealer.
As per example : A = Manufacturer, B = 1st Stage Dealer, C = 2nd Stage Dealer, D= 3rd Stage Dealer & E= End user (Excise Registered)
As per above B is purchasing the goods from A with Excise duty and selling to C, C is selling the same to D with Excise duty. and D is selling the same to E (End User) with Excise Duty.
Now, Whether E is eligible to get Cenvat Credit ???? As he is purchasing the goods from 3rd Stage Dealer.
08 February 2016
You mean to say E is end user registered Excise he must be manufacturer only since he uses in manufacturing process he can avail cenvat credit, end user customer will use goods for own consumption other than manufacturer or trading to tat extent E will loose cenvat credit
09 February 2016
E= manufacturer and using the goods yo manufacture excisable goods.
Final product will be descharge by paying excise duty through Invoice... by E
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