1st or 2nd stage dealer

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Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2013 1.) who is the 1st & 2nd Stage dealer?

2.) We purchased the goods from a company who is a dealer and importer. they billed to us with excise invoice with the duty breakup as under

Assessable value Rs. 72020.00
CVD @ 12% Rs. 8642.40
Special AED @ 4% of CVD Rs. 2518.36

so there is no edu cess or higher edu cess. so how we will take the input in RG23A PART-II. or we have assume all the amount as a basic excise duty.(CVD+AED) pls explain

thanks for your co-operation on this regards

CA Vijay Kumar Walande

CA Vijay Kumar Walande (Expert)
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13 November 2013 first stage dealer” means a dealer, who purchases the goods directly from, -

(i) the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer, under cover of an invoice; or

It is clear from the definition that anybody who purchases the goods directly from the manufacturer under the cover of an invoice issued within the meaning of the Central Excise Rules is a first stage dealer.

As far as taking of Cenvat is concerned , Yes ! you have to consider both CVD and AED as Basic Excise Duty.

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2013 and who is the 2nd stage dealer? pls explain

CA Vijay Kumar Walande

CA Vijay Kumar Walande (Expert)
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14 November 2013 A dealer who purchases goods from first stage dealer

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