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First stage dealer invoice

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Hitendra Jain

Tax consultant

431 Points Posted on 17 November 2015

In Central Excise Registered dealer case x purchase goods for Rs. 112.50 in which Rs. 100 is trasanction or assessable value and Rs. 12.5 is Excise Duty. He sold same goods same quantity and receive Rs. 100 as 12.50 for duty and 87.5 for goods.

In this case can the buyer claim CENVAT of Rs. 12.5 on the basis of invoice issued by x revealing his ECC No., Excise code of the goods, rate of duty and amount of duty, or the CENVAT has to be proportioned because goods acquired by the buyer at lower price.

Please also clerify that if x sold goods at Rs. 200, x is not bound to levy excise duty because he is trading the goods as it is as he purchased them and no manufacturing was made at all.

Whether the detail of manufacturer and his Excise registration number is required to be quote on the invoice issued by x despite of the fact that he is registered dealer.

Replies (1)

Niraj Kumar Sinha

Sr. Officer SPSIL

469 Points Posted on 17 November 2015

in first case: Price of the goods has no means to transfer the excisable goods by a dealer. Dealer use to pass on excise duty on qty base (i.e. Rs. XXX per MT or Unit). So whether sale price is increased or decreased duty per unit will be the same. So buyer can claim CENVAT Rs. 12.50/-.

In second case: If x is excise registered dealer, and avail CENVAT credit on the purchase goods, then he will have to maintain same formate of invoice whether his buyer wants to avail CENVAT Credit or not. So if he has taken the goods in his RG23D register he has to show the name of manufacturer his invoice no. and date on his bill.