Availing cenvat credit - unregistered first stage dealer

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Rubul

Student

151 Points Joined January 2009

Dear Members,

Our Co. has purchased a BMW car from a first stage dealer who is not registered under central Excise Act.

My question is "Can we set off the amount of excise paid on that car with our Co's service tax liability." (First stage dealer is not registered with exercise department.).

One thing i want to add is that we don't know the amount of service tax paid on that car. Excise amount paid by us is calculated by reverse calculation and the first stage dealer is not issuing invoice in Excise format. Is it will be legal to avail Cenvat credit calculated on reverse calculation basis.

If it is not legal, kindly tell me the procedure to set off my service tax liability with the excise duty paid on that car.

Thanks And Regards

Rubul

Replies (3)

Aarush

Delhi

1566 Points Joined August 2008

Rubal.. cant understand that how dealer charges you excise duty when he is not registered with department.. for taking input you need to take Tax invoice in which excise registration number with all break of excise duty charges should be mentioned ..but in your case nothing is happen..hence you can not take input in this case.

Rubul

Student

151 Points Joined January 2009

Dear Sir

Dealer did not charged Excise duty in his bill. I am explaining the whole case please advice can i avail CENVAT credit

BMW India pvt. Ltd.(registered under Excise Act.) had sold car to Deutche Motoren Pvt Ltd.(Not registered Under Excise Act) but the invoice of BMW contains Excise duty. In turn Deutche motoren pvt ltd. sold the car to our Co. ABC Ltd. (excise amount is not shown in invoice by Deutche Motoren).

Now here Deutche motoren is Fist Stage Dealer,...... Can Deutche Motoren pass on the benefit of Excise duty to ABC ltd???

Further my question is that do First Stage dealer is also required to be registered under Excise Act in order to pass on the benefit of CENVAT credit??

MJ Krishnamurthy

ACCT(Retd)

7197 Points Joined July 2010

Mr Rubul,

M/s Deutche Motoren is the distributor for BMW. Only a manufacturer charges excise duty while selling his products.With the distributor the excise duty gets included in the price and only VAT or CST is charged. There is no chance of taking cenvat benifit because it is applicable to a manufacturer only.This car is sold to a consumer and it is not a raw material or a component used in a manufacturing a final product. So, no further benifit of any type......MJK