Dealers stages

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2012 HI,

MY POINT IS THIS,

IN CENTRAL EXCISE WHAT TYPR OF DEALERS CATAGEROIES.

MY KNOWLEDGE FIRST STAGE & SECOND STAGE DEALER.

PLS.HELP ME WHICH TYPE OF DEALER IS FIRST STAGE & WHICH TYPE OF IS SECOND STAGE DEALERS.ANY OTHER STAGES OF DEALERS CATAGEROIES IN CENTRAL EXCISE.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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13 June 2012 A first stage dealer has been defined in the Rule 2(ij) of the Cenvat Credit Rules, 2004[earlier Rule 2(f)] as,

“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.

Purchase or Sale has been defined under Section 2(h) of the Central Excise Act,1944 as

“sale” and “purchase”, with their grammatical variations and cognate expressions, mean any transfer of the possession of goods by one person to another in the ordinary course of trade or business for cash or deferred payment or other valuable consideration;”

'second stage dealer' as a dealer who purchases the goods from a first stage dealer.

The provisions of Rule 11 shall apply mutatis mutandis to goods supplied by a first stage dealer or a second stage dealer.

please read:

http://www.taxmanagementindia.com/wnew/print_Article.asp?ID=585

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