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

Importer registration and dealer status determine eligibility to pass import-duty credit when already registered as a first-stage dealer. The amendment requiring separate importer registration applies only to importers who had not been registered as first-stage dealers; a person already registered as a first-stage dealer who passed import-duty credit on invoices using that dealer registration is not affected, and the department has no basis to issue a show cause notice solely on the later requirement for separate importer registration, particularly where returns reporting both trading and importing were accepted without objection.