Excise registration query

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This query is : Resolved

Mayur Agrawal (Querist)

27 July 2011 XYZ LTD HAS A OFFICE IN MADHYA PRADESH. IT HAS TAKEN REGISTRATION FOR MP VAT AND CENTRAL EXCISE FOR DEALER FOR THAT OFFICE.

IT HAS ALSO A OFFICE IN RAJASTHAN AND TAKEN A VAT REGISTRATION FOR IT.

ACTUALLY IT WILL PURCHASE GOODS FROM EFG LTD IN MP AND SELL IT TO ABC LTD RAJASTHAN.

IN EFG LTD'S BILL SOLD TO PARTY IS ITS XYZ LTD MP OFFICE AND SHIP TO PARTY IS XYZ LTD RAJASTHAN.

XYZ LTD branch RAJASTHAN will sell goods to ABC LTD RAJASTHAN. and issue a RAJASTHAN VAT invoice to ABC LTD

xyz ltd MP NOW ISSUE A INVOICE only FOR EXCISE DUTY to ABC LTD RAJASTHAN.

whether he can do so or he has to take separate central excise registration for rajasthan branch.

Guest

Guest (Expert)

28 July 2011 Hi Mayur Agrawal,
The primary condition to avail the CENVAT credit is destination point, even though the material transfer/sold for the same entity i.e. Bill to HO and Ship to Branch office by our vendor.
In the given case XYZ limited Rajasthan received material from EFG Limited, MP with excise invoice only. XYZ limited Rajasthan only eligible to avail the CENVAT credit but not by XYZ Limited MP. Now, XYZ limited Rajasthan sold the materials to ABC Limited Rajasthan by generating the VAT invoice but it can’t pass on the CENVAT credit to ABC Limited Rajasthan.
In order to pass on CENVAT Credit by XYZ Limited Rajasthan need to register with Excise as a dealer in Rajasthan then it can possible to pass on the CENVAT credit to its customer i.e., ABC Limited Rajasthan.
I hope the query clarified, if you need any further information please let me know.
With warms,
CS Venkatesh.