CENVAT credit query - urgent - plz reply

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Varun

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104 Points Joined May 2008

It would be great if anyone can help me out with a CENVAT query

An importer who is also a manufacturer, imports and manufactures excisable goods. He is registered with central excise as a manufacturer (ie his registration no. contains XM). He manufactures excisable goods, pay excise, remove the goods, under an invoice and sell them. The buyer can avail cenvat credit of excise duty based upon his invoice [containing his registration no (say ABCDE1234HXM001].

He also imports goods, pays CVD on them, issues invoice from warehouse (where he keeps those goods) and sells them.

My question is :- Can the buyer take credit of CVD based upon his invoice?

It may be noted that he has not taken a seperate registration as an importer. He is using his manufacturer's registration no. (ie XM).

In short: Is being registered as a manufacturer is enough to cover both manufacture and import, or do he need to take a seperate registration as an importer ( which will be a dealer registration containing XD in the registration no) ?

It would be a great help to me if anybody can resolve my query.

Replies (3)

Reema #

122 Points Joined July 2009

hey varun if any body uses imported goods in manuf of finalpdt then only cvd of imported goods can be passed on to the buyer .if mere trading of imported goods are done then it is not entitled to pass on cvd credit

so ur question that whether reg as a manuf can any body pass on cvd of imported goods which is merely traded by him doesnt make sense

Prateek

Top Management

213 Points Joined August 2009

When you are issuing invoice from warehouse, I presume that you are using the same product name as that of the prodcut you have imported......in that case you cannot use your Manufactruing code......You need to register as a Delaer/importer

However if you happe to be repacking the product or can show some value addition then you can issue invoices charging the applicable Excise Duty....and claim cenvat on the CVD paid at time of import.

P.Bashista

Advocate

367 Points Joined July 2009

Manufacturer needs to take a seperate registeration if he is issuing invoices on which the buyers are taking credit. Dealers/Importers who intend to issue Cenvatable invoices needs registeration.