Board Clararification dt. 06.05.2015 on Notification No.08/2015 dt.01.03.2015

[Fortune Procurators]

Dear Sir,

A = Is excise dealer ( sells material to B )Purchase material from manufacture - 1^st Stage Dealer

B= Is excise dealer (Sells material to C and purchase from A ) 2^nd Stage Dealer

C= Manufacture (Consumer-End user) purchase from B

Can (B) instruct directly to A for sending goods to C by mentioning on Excise Invoice Buyer B and Consignee C. C will get cenvat credit on A’s sale bill and B will issue commercial invoice.

As per Board clarification on Notification No. 8/2015 dt. 01.03.2015 our understanding is that only on manufacture or importer’s invoice cenvat credit available. So in this case A is only Excise Dealer not manufacture or importer.

Is it possible to C to get cenvat credit on the basis of A's excise invoice?

Kindly give your opinion.

[PAWAN KUMAR]

Dear Sir,

Yes, Cenvat credit is admissible on registered dealer's A's excise invoice. The same has also clarified by the CBEC vide issuing the circular no.1003 dated 05.05.2015.

[Fortune Procurators]

Dear Sir,

Thanks for prompt reply.

In our case 'A' is not a manufacturer. He is dealer and registered under Central Excise. He purchase material from Manufacturer. So there are 4 persons in the chain of sales/purchase.

Considering this additional information your reply will be same.

Please guide us.

[PAWAN KUMAR]

Dear Sir,

Cenvat credit is applicable on A's Invoice.

AI Summary

Cenvat credit admissibility: registered dealer's excise invoice can support input tax credit for the end user when documentary requirements met. Cenvat credit is admissible to the ultimate consumer/manufacturer on the basis of an excise invoice issued by a registered dealer (A) who is not a manufacturer or importer, where A dispatches goods to consignee C on B's instruction and A's excise invoice evidences the transaction and identifies buyer and consignee; a CBEC clarification supports that a manufacturer's or importer's invoice is not the sole basis for cenvat credit where the dealer's excise invoice satisfies invoice and documentary requirements.