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Clearance of input as such invoice treatment...

Ankit (Student) (26 Points)

24 March 2013

Dear All,

Please explain me, whether how is invoice of manufacturing excise treated, when raw materials are removed as such...

in this scenario is manufacture acting as first stage dealer or what???

Clearance of input as such invoice be treated as dealer excise invoice??? For manufacturing excise unit?

also can manufacture work as dealer and manufacturer under this facility...

-Ankit Mehta

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6 Replies

satya (Executive Excise) (1839 Points)
Replied 24 March 2013

Dear Ankit,

Same Rule 11 Invoice is needed for As such sale, in that invoice you have to mention that "AS SUCH REMOVALS" or "Cleared under Rule 3(5) Cenvat Credit Rules 2004".

before you making Invoice, verify duties of Original INPUT Procured Invoice, the same duties were discharged while same INPUTS removing as such sale.

Ankit (Student) (26 Points)
Replied 24 March 2013

Thank Mr. sathya, But can you please tell how would be such invoice be treated at customers side,

can it be treated as First dealer's invoice...

(Guest)

what is second stage and first stage dealer?

shivani (consultant) (122 Points)
Replied 25 March 2013

Remove as such as per Mr Satya guidliance

if unit is manufacturing and he will be I stage only-

Units will by vertue manufacturing and dealers

Ankit (Student) (26 Points)
Replied 27 March 2013

Dear All, Thanks, but can anyone elaborate what exactly must be mentioned on invoice of manufacturing Excise for as such removals... Invoice no. Of original supplier, name of supplier and what else to be written in naration??? Please kindly provide this details...

Krunal Parekh (Proprietor) (144 Points)
Replied 28 March 2013

Dear Mr. Ankit,

When you had purchased the raw material for manufacturing the goods from the vendor you were on the second stage biller. And once you have manufactured the goods any waste, scrap or runner going out of the unit will be treated as first stage billing since the tax source generation will be starting from you. The major reason being, the item (raw material) purchased by you has ended by the taxes you have paid to the supplier you purchased from therefore the billing stage has ended. Now the new generation will start from you as it is a waste of the manufacturing unit.

As far the naration is concerned, it depends from item to item and commodity to commodity. Yes this is true the duty that has to be passed on will be as per the original excise invoice you have recived from your supplier from where you have purchased the raw material because you are not making any profit/loss out of those goods. You are just clearing the debt stocks and clearing the inventry.

For final conclusion, I strongly suggest you to constant the C/A as the excise matter is not that simple as we usually feel.

Thank you!

Regards,

Krunal Parekh