Importer using Dealer registration number.

[Chandan Garg]

Dear Experts,

We are a trading unit situated in Delhi procuring goods locally as well as through imports. We are registered under CEA as dealer since January, 2014. From the period of January, 2014 to August, 2014 we have passed on CVD and SAD by issuing invoice bearing our dealer’s excise number. It is from September, 2014 that we have obtained a separate importer registration number. Now that we have duly filed our excise return for Jan, 2014 to September, 2014 reporting our both trading as well as importing activities and the superintendent has even accepted the hardcopy of our return without raising any objection as to passing credit of import duty using a dealer registration number. Can superintendent now raise the matter and issue us a SCN?

[Rajagopalan Ranganathan]

Sir,

The new amendment that an importer is also to register with the department as first stage dealer is applicable only for those importers who had not registered themselves as first stage dealer. If you are already registered as first stage dealer and then supply imported inputs under you invoice passing on the credit of CVD and SAD, the department has no ground to issue show cause notice to you. This is my opinion.

AI Summary

Superintendent Cannot Issue Show Cause Notice for Pre-Importer Registration Activities Under Central Excise Act Amendment A trading unit in Delhi, registered as a dealer under the Central Excise Act since January 2014, sought clarification on whether a superintendent could issue a show cause notice for passing on import duty credits using a dealer registration number before obtaining an importer registration in September 2014. The response clarified that if the unit was already registered as a first stage dealer, the new amendment requiring importer registration does not apply, and the department has no grounds to issue a show cause notice for past activities.