Cenvat credit on Goods Purchased from Ist Stage Dealer

This query is : Resolved

Aman Baranwal (Querist)
Follow

29 March 2009 I am Currently engaged in the Audit of a Public limited Company. After Inspection of purchase vouchers, i have seen that old excise Rates @10%/14% are charged by A dealer even if invoice are Raised after Excise Rates are Reduced(24.02.2009) to 8%.
Dealer says that he has purchased these goods before 24th February 2009 therefore he has charged Excise @14%/10%.
In these Scenario Company are Paying excess Excise Duty.
Company can Claim Excess Excise Duty paid as CENVAT CREDIT but Working Capital Requirement of the Company is Increased.

Does the dealer response regarding Excess Ex. Duty is Correct. Please tell me Reasons in this Case.

S. Banerjee

S. Banerjee (Expert)
Follow

30 March 2009 Mr. Aman,
A Central Excise Registered Dealer does not pay C. Ex duty like a manufacturer he can pass on the duty as he paid to the manufacturer/first stage dealer. Based on the purchase invoice you can avail the Cenvat credit as mentioned in dealer invoice. If your co is a manufacturer then you are benefited not looser and I do not think that your co's working capital requirement is more.
Thanks, S. Banerjee

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

R M Shekhaliya

Amit Goyal

SHRI HARIRAO

Frank

Pushkar Nagda

Subscribe Now

Cenvat credit on Goods Purchased from Ist Stage Dealer

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

GST CONSULTANT

Manager- Finance and Compliance

GST CONSULTANCY

Accountant

CA Final