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.

AI Summary

Cenvat Credit Eligibility Confirmed for Manufacturer Using Excise Invoice from First-Stage Dealer Under Notification No. 08/2015 A discussion on a forum addresses whether a manufacturer (C) can receive Cenvat credit based on an excise invoice from a first-stage dealer (A) when goods are purchased through a second-stage dealer (B). The query references Notification No. 08/2015 and seeks clarification on Cenvat credit eligibility. A respondent confirms that Cenvat credit is indeed admissible on A's excise invoice, as clarified by a CBEC circular. Despite A not being a manufacturer, the credit is available as A is a registered dealer under Central Excise, and the chain of sales involves four parties.