Cenvat credit on E1 purchase

[Rk Govindan]

We have purchased material from  a customer at Ahmedabad, through one of their Bangalore agent  under E1 sale. We have received invoice copies of  Ahmedabad customer to  their bangalore agent with all taxes applicable and another invoice copy from bangalore agent to our favor with applicable 12.36 percent excise duty.

Please let us know whether we can avail CENVAT credit based on our dealer’s E1 sale ' Duplicate' for transporter' invoice.

[PAWAN KUMAR]

As per my view, you may avail cenvat credit on the same but it should be supported with original copy on which excise duty was paid.

[SHIVKUMAR SHARMA]

Mr.Govindan

You can avail Cenvat Credit on the basis of invoice issued by  your supplier of Bangalore I 100 percent agree with the opinion of Mr.Pawankumar..

. SHIVKUMAR SHARMA

[YAGAY andSUN]

Yes, you may avail CENVAT credit on goods purchase under Interstate Sale (E-I/E-II transactions) under CST Act, 1956

[Guest]

Credit can be taken only if the Bangalore Agent is registered under Central Excise in the capacity of "First Stage Dealer or Second Stage Dealer" and invoice is issued by him under the provision of Rule 11 of the Central Excise Rules, 2002. 

[Rk Govindan]

Noted and Thank you Sirs.

AI Summary

CENVAT credit requires original supplier invoice, agent excise registration, and invoice issued under Rule 11 for E1 sales. CENVAT credit on purchases through an E1 interstate sale is available only if excise duty has been paid and the claim is supported by the original invoice evidencing duty payment; where a local agent intermediates, that agent must be registered as a First Stage Dealer or Second Stage Dealer and must issue invoices in compliance with the relevant invoice provision so the buyer holds a valid invoice for claiming credit.