taking credit on the invoice of transit sale

[MEHUL ASHAR]

Respected Sir,

As regarding above subject, one of my client has got the invoice of transit sale in which our supplier which is a non-excisable dealer is mentioned as consignee & on delivery box there is our address to receive goods.So the question arises that can my client who is an excisable assessee can take the credit of excise on the invoice of transit sale.

Please reply.

thanking u

[Rajagopalan Ranganathan]

Sir,

Please see point 5 (iii) of CBEC's Circular No. 1003/10/2015-CX dated 5.5.2015 which states that "Where a un-registered dealer negotiates sale of an entire consignment from a manufacturer or a registered importer and orders direct transport of goods to the consignee, credit can be availed by the consignee on the basis of invoice issued by the manufacturer or the registered importer. As the dealer is not registered, there is no question of issuing any Cenvatable invoice by him . Such dealers as in the past can continue to be un-registered.

In view of the above you can avail the credit.

[MUKUND THAKKAR]

agree, with the view of Sir Rajagopalan Ranganathan.

[Mahir S]

Sir,

Has he received excisable invoice and original invoice is issued by whom.

[MEHUL ASHAR]

THANK U SIR FOR UR REPLY.

AI Summary

Input tax credit entitlement: consignee may claim credit using manufacturer or registered importer invoice in transit sales. CBEC guidance permits a consignee to avail input tax credit on the basis of an invoice issued by the manufacturer or a registered importer where an unregistered dealer negotiates sale of an entire consignment and directs direct transport to the consignee, since the unregistered dealer cannot issue a cenvatable invoice.