CIRCULAR No.1003/10/2015-CX

[Asked by Guest]

Dear Sir,

Please explain us the Circular No.1003/10/2015-CX Dated 5th May, 2015 in short basically What is that about,

 

Thanks and regards.

 

[PAWAN KUMAR]

Dear Sir,

By issuing the subject circular, the CBEC has clarified the amendment made vide notification no.08/2015-CE (NT) dated 01.03.2015. The cenvat can be taken on the goods sent directly from manufcturer to utlimate customer on the direction of dealer and invoice should contain the dealer as buyer. There was some issue regarding applicability of registration of dealer for issuing cenvatable invoices on the basis of which customer can avail cenvat.

Now the matter has been clarified by CBEC that no registration is required for the practice being undertaken even goods can be directly shifted to ultimate customer from the manufactuer.

Some relevant part of the circular is as under :

3. The issue involved has been examined. It is clarified that the purpose of inserting the third

and fourth provisos in sub-rule (2) of Rule 11 of CER is to allow an additional facility for direct transport of goods from the manufacturer or the importer to the consignee where the consignee avails Cenvat Credit on the basis of the Cenvatable invoice issued by the registered dealer or the registered importer. This facility obviates the need for the goods to be brought to the premises of the registered importer or the registered dealer for subsequent transport of the goods to the consignee.

4. It is further clarified that the provisions of the circulars on the issues referred in Para 3 would continue to apply as no amendment has been made in rule 9 of the Cenvat Credit Rules, 2004 which prescribes the document on the basis of which Cenvat Credit can be availed. No amendments have been made regarding registration requirements also.

AI Summary

Direct transport for Cenvat credit permitted where consignee avails credit on dealer/importer invoice, registration rules unaffected.
The CBEC clarified that the provisos added to sub rule (2) of Rule 11 permit direct transport of goods from the manufacturer or importer to the consignee where the consignee avails Cenvat Credit on the basis of a cenvatable invoice issued by a registered dealer or registered importer, obviating the need to bring goods to the dealer/importer premises; documentary requirements for availing credit and registration requirements remain unchanged.