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I am second dealer not end user so i can pass excise credit

18 May 2016

Hello all, I am a second dealer purchasing goods from an company authorized dealer who purchases goods direct from manufacturer, but I am not an end user, I do sell products to end user ,, so my question is ? Can end user will get excise credit(end user is excise registered company/firm) benefit on the goods which has been purchased from my firm(second stage dealer).. or only second stage dealer (direct end user) can get benefit.. (does it means end user purchase from first dealer then only he/she can get benefit ??) Does second stage dealer and end user should be the same person to receive excise benefit ?? Or in other words I do say, does second stage dealer means end user ?? Please help.. thanks..

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3 Replies

pintu ( Executive) (174 Points)
Replied 19 May 2016

the credit will get pass on to the client

anil jain (Partner) (1067 Points)
Replied 19 May 2016

Pl see Rule 9(1)(5) as below

Rule 9 of Central Credit Rule 2004:

(1) The CENVAT credit shall be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely

invoice issued by

a manufacturer for clearance of inputs or capital goods from his factory or depot or from the premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer
a manufacturer for clearance of inputs or capital goods as such
an importer
an importer from his depot or from the premises of the consignment agent of the said importer if the said depot or the premises, as the case may be, is registered in terms of the provisions of Central
Excise Rules, 2002
a first stage dealer or a second stage dealer, as the case may be, in terms of the provisions of Central Excise Rules, 2002

mohammad rasool baig (Management Consultant) (1026 Points)
Replied 19 May 2016

Yes first stage dealer can pass the credit to the end user

But end user & second stage dealer cannot be the same person because if the person is end user then he cannot pass the credit but which second stage dealer can do

So you can pass the credit to your customers but if your customers are end users then they cannot pass the credit even though they are second stage dealers.