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Cenvat allowed or not

16 April 2017

in Excise we are registered in Excise as a dealer's. and
we purchase the steel sheet from dealer . and further we sale to another party which is consinee is manufactured and buyer is dealer. now my question is can another party take the cenvat or not. e-1 transaction involved.

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3 Replies

(Guest)

excise credit will pass manufacture to manufacture not with manufacture to dealer

Dilip Darji (392 Points)
Replied 17 April 2017

You are a Dealer "A". You are buying from dealer "B" and "A" will sale the goods to manufacturer "C".

If "B" is indicating consignee or "goods delivered to" as "C", "C" shall be in a position to avail CENVAT Credit both under Excise Act as well as GST also.

"B" shall prepare his commercial Invoice to "A" alongwith excise duty (which he would have paid to the manufacturer). "A" shall prepare Commercial invoice in the name of "C" alongwith excise duty.

Dilip Darji (392 Points)
Replied 17 April 2017

You are a Dealer "A". You are buying from dealer "B" and "A" will sale the goods to manufacturer "C".

If "B" is indicating consignee or "goods delivered to" as "C", "C" shall be in a position to avail CENVAT Credit both under Excise Act as well as GST also.

"B" shall prepare his commercial Invoice to "A" alongwith excise duty (which he would have paid to the manufacturer). "A" shall prepare Commercial invoice in the name of "C" alongwith excise duty.