CENVAT DUTY

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2011 I'm a coal trader, buying coal thriugh e-auction held by MCL. From 1st march 2011 coal india have applied excise @5.15% onbasic price of coal. We pay to MCL in advance for coal including of all duties agaist which they issue us Road Delivery Order for lifting of coal. Now further we sell the coal to various sponge iron plants.
The sponge Ironplants are asking us for the excise invoice or else they are deducting the excise amount from the bill & do the payment.
Further the MCL is not issuing us any excise Invoice immediatey agaist of which we shall pass on the cenvat duty to the plants.
We are in confusion how to pass on the cenvat duty.
Please help

S.P.Mahanta

S.P.Mahanta (Expert)
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05 July 2011 MCL is subsidiary of Coal India Ltd( PSU). There shall be no problem in availing Cenvat Credit by Sponge Iron Plants on inv: of MCL attached with sale invoices raised by you (being neither manufacturer/dealer).This way Cenvat credit can be passed to manufacturers.

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