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.

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.