Tinting activity (Depot) Dealer

[Asked by Guest]

Dear Sir, We are a mfg co, we are supplying base paint to our depot registered under excise and stainer from our another factory to the same depot. Can such depot can carry out such tinting activity at depot and clear the goods to the end customer. If yes whether such depot can avail cenvat credit of base paint and as well as stainer received and pass on the same to the end customer. Or It the tinting activity which will be carried out by the depot not amts to manufacture then whether the depot can only sell goods on commercial invoice,Please explain, Please give any reference regarding this,thanks and regards.

[Arun Kumar Singh]

Invoice issued by manufacturer from depot or premises of consignment agent or any other premises where goods are sold on behalf of manufacturer is eligible for availing cenvat credit. The duty is paid by manufacturer, which is passed on by the depot/consignment agent. However, the depot/consignment agent of manufacturer is not a "first stage dealer". The depot/consignment agent should be registered with central excise.

AI Summary

Cenvat credit eligibility: depot-issued manufacturer invoices allow credit when duty paid and goods sold on manufacturer's behalf.
A depot that sells goods on behalf of the manufacturer may perform tinting and invoices issued from depot premises by the manufacturer qualify for cenvat credit because the manufacturer pays the duty which is passed through; the depot/consignment agent must be registered with central excise and does not become a first stage dealer.