Excise duty chageable by second stage dealer.

A manufacturing company (A) located in Kolkata  was contacted for  supply of material . The company redirected our request to their dealer at Dhanbad (B) in Jharkhand. & the order for supply of material was placed with the said dealer.

Now the dealer (B) is asking 10.3% Excise duty on orderd value besides Jharkhand state VAT. The invoiced is raised by the dealer not by the manufacturer.

Kindly help me in finalising their bill. whether the excise duty being asked by the dealer is correct. The consignee for the manufacturer (A) is   the dealer & not us  where as we are the consigneee for  the  dealer.

Whether the claim of excise duty by the dealer is justified? Please help in redressal of dispute.

Replies (1)
Originally posted by : ashok kumar baranwal


A manufacturing company (A) located in Kolkata  was contacted for  supply of material . The company redirected our request to their dealer at Dhanbad (B) in Jharkhand. & the order for supply of material was placed with the said dealer.

Now the dealer (B) is asking 10.3% Excise duty on orderd value besides Jharkhand state VAT. The invoiced is raised by the dealer not by the manufacturer.

- Dealer is entitled to issue the invoice of dealer only, based on the manufacturer invoice only, and pass on the duty to buyer, dealer can not charge excise of its own. 

Kindly help me in finalising their bill. whether the excise duty being asked by the dealer is correct. The consignee for the manufacturer (A) is   the dealer & not us  where as we are the consigneee for  the  dealer.

- get in connection with manufacturer, and check whether manufacturer has charged the duty or not, 
Whether the claim of excise duty by the dealer is justified? Please help in redressal of dispute.

Manufacturer has charged the excise duty and the same is not mentioned in your order, hence the dealer got the excise duty charged from manufacturer (A) to dealer (B), now dealer can issue u invoice with duty pass on, but the gross amount would be inclusive of excise duty ( VAT should be extra payable)

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