Excise dealer cenvat

Dear Members,

Query in cenvat passon in case of dealer of exciseable goods.

Mr. A Registered dealer purchase goods from XYZ Limited manufacturer, wherein he himself is buyer and consignee is Mr. B, Credit can be pass by Mr. B

Now Mr. B sale such goods to Mr. C so as a dealer he can do so. credit can be passon.

Now my question is that Mr. C can passon credit to Mr.D????????/

Two Views of mine.

1. Mr. A is first stage dealer and Mr. B is second stage dealer so credit cant passon by Mr.C who is in third stage

2. Mr.B is first dealer as consignee is Mr.B in bill of manufacturer, then Mr. C is second stage dealer and then he can passon credit..

Pl advise...

 

CA Biraj Kotecha

Replies (1)

A dealer who purchases goods directly from the factory of manufacturer under invoice issued by manufacturer under Rule 11 of Central Excise Rules 2002. Second stage dealer means a dealer who purchases goods from a first stage dealer. B is received the goods directly as a consinee from the factory of manufacturer under Rule 11 of Central Excise Rules 2002 then B will be the first stage dealer and C is the second stage dealer. 

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