CENVAT CREDIT ON INVOICE ISSUED BY DEALER FOR IMPORT GOODS

[SURYAKANT MITHBAVKAR]

We have purchased import material from our dealer who is registered with C. Excise and he has passed on the CVD plus additional duty to us.

Under Notification No. 08/2014-C.E. (NT), 09/2014-C.E.(NT), 10/2014-C.E.(NT).11/2014-C.E. (NT) w.e.f. 01.04.2014 can we avail cenvat credit for the same since the dealer is not a Importer. He is only a Dealer registered with C.Excise.

However please explain us the above notification.

[Rajagopalan Ranganathan]

Sir,

As far as you are concerned you can take the credit as per your dealer's invoice since he is registered with Central Excise Department. The problem will arise only in respect of your dealer since if the importer from whom your dealer has purchased the imported goods is not registered with Central Excise Department under the notifications mentioned by you the importer cannot pass on the credit of CVD and additional duty to your dealer.

[Ravikumar muthusamy]

Dear Experts

My client has imported capital goods. Pls advise what are all eligible to take cenvat from the customs bill also advise how soon client has to utilise the same in his liabilities

[Chandan Garg]

Sir, what if the dealer has himself imported the goods and passed on the duty on the basis of his dealer excise number instead of importer excise number?

AI Summary

CENVAT credit entitlement: purchaser may claim credit from a dealer's invoice if dealer is excise-registered, subject to importer registration. CENVAT credit for countervailing duty and additional duty charged on imported goods can be taken by a purchaser if the supplying dealer is registered with Central Excise and invoices those duties; however the importer's lack of registration under the relevant notifications prevents the importer from transferring credit to the dealer, potentially invalidating subsequent credit passed to the purchaser. Related issues include eligibility of customs bill components for credit, timing for utilisation on capital goods, and the validity of credit passed when a dealer imports using its own excise number.