Dear Experts,
We have purchased some store material from ABC who has issued tax invoice to us. ABC is not registered with excise department. The material was supplied by XYZ who is 1st stage dealer registered with excise department. In the excise invoice of XYZ, our company is mentioned as consignee, ABC mentioned as buyer.
All the three companies i.e. our company, ABC & XYZ are located in same state.
Please confirm whether we are entitled to CENVAT credit or not.
Thanks & Regards,
in the chain the cenvat credit can not be passed if any dealer is not registered with excise as registered dealer. as ABC is buyer, he has to get registered as dealer with excise and issue cenvatable invoice
Dear Mr. Rajeesh,
Your are eligable to take cenvat credit, for that you have to received the invoice from xyz.
you said xyz mentioned your name as consignee and abc as buyer and also abc registered with excise so he has eligible to transfer the cenvat, based on that you are eligible to take credit, which they transfered.
Agreed wit d views of U S SHARMA.
| Originally posted by : Ananthakumar Palanisamy | ||
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Dear Mr. Rajeesh, Your are eligable to take cenvat credit, for that you have to received the invoice from xyz. you said xyz mentioned your name as consignee and abc as buyer and also abc registered with excise so he has eligible to transfer the cenvat, based on that you are eligible to take credit, which they transfered. |
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Dear Mr. Ananthakumar
ABC is not registered with excise.
Not necessarly . i have wrongly mentioned in our last reply on abc instead xyz. you can read as below
you said, XYZ mentioned your name as consignee and ABC as buyer in their invoice. Also XYZ registered with excise as dealer. So XYZ has eligible to transfer the cenvat, based on that XYZ invoice, you can use that XYZ dealer invoice to take cenvat credit
Cenvat credit cant be availed if the goods are purchased from unregistered dealer...
so it doesnt matter that they r purchased from the same state company.
| Originally posted by : Ananthakumar Palanisamy | ||
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Not necessarly . i have wrongly mentioned in our last reply on abc instead xyz. you can read as below you said, XYZ mentioned your name as consignee and ABC as buyer in their invoice. Also XYZ registered with excise as dealer. So XYZ has eligible to transfer the cenvat, based on that XYZ invoice, you can use that XYZ dealer invoice to take cenvat credit |
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I agree with you.
I agree with Palanisamy. ABC is a buyer not a dealer. So it doesn't matter whether ABC is registered or not.
XYZ is registered & goods are purchased from it.
| Originally posted by : Ananthakumar Palanisamy | ||
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Not necessarly . i have wrongly mentioned in our last reply on abc instead xyz. you can read as below you said, XYZ mentioned your name as consignee and ABC as buyer in their invoice. Also XYZ registered with excise as dealer. So XYZ has eligible to transfer the cenvat, based on that XYZ invoice, you can use that XYZ dealer invoice to take cenvat credit |
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how can consignee take credit when he is not a buyer in said invoice?
sales transaction is between abc and party, not with xyz and party, xyz delivered goods to party on account of ABC, who is unregistered, so the excise cenvat chain breaks at abc.
if i m not wrong then there is no space for "consignee" in dealer invoice.
there is space for "manufacturer" / "Supplier"/ and buyer only.
As per my understanding of CCR rules, XYZ can claim cenvat benefits because the condition of claiming benefit is met viz. final input is consumed by XYZ and the duty is paid by the manufacture. Here the concept called ship to sold to method. if the manufacturer directly sends the material after rasing excise invoice to the ultimate customer ( Manufacturer) by mentioning the name will suffice to take the benefit. ( Transit Invoice)
In an ideal condition the dealer ABC in this case supposed to register as dealer and pass on the credit to final customer by issuing dealer excise invoice. however in this case he has not registered but no probs that XYZ can take the benefit as he is finally consume the goods in manufacture. the only requirement is ABC has to give a declaration that he has not claimed any cenvat benefit on that invoice. ( proof of burden).
Regards
Dayananda
Agreed with U S SHARMA.
According to my understanding you can only claim cenvat credit on the original invoice of manufacturer even if there is name of other party(ie dealer on the invoice) condition is that it should dirrectly come from manufacturer and ABC never got it delivered to its premises.
CAclubindia
