MANUFACTURING REGISTRATION

[mukesh kumar]

Hello,

Please tell me i am Dealer registered in Central Excise now i want to Convert from Dealer to Manufactured Reg. Delaler to avail Cenvat Credit which i was loosing under Dealer Registered.

what will be the consequences by this conversion should i need to surrender the old dealer reg. and take new or What else??

is there any other legal formality which i have to change like DVAT Reg. Change or any other ??

Please help

[KASTURI SETHI]

Sh.Mukesh Kumar Ji,

Registration as a dealer makes you eligible for passing on the credit to the buyer. Buyer may be manufacturer or not. A person/an assessee registered with the department as a manufacturer of excisable goods avails the credit and utilizes the same for payment of Central Excise duty on final product. Both registrations have separate purposes. How and what are you losing as a registered dealer ? Are you a manufacturer or want to be a manufacturer for avoiding the so-called loss as per your version ?

[Rajagopalan Ranganathan]

Sir,

You have made very apt comment.

[KASTURI SETHI]

Sh.Rajagopalan Ranganathan Ji,

Thanks a lot, Sir. If any reply is liked and appreciated by experienced and learned person, it really boosts my moral.

[Mahir S]

Mukesh Kumar ji,

Your ideas and views of converting from excise Dealer to excise Manufacturer for the purpose of availment of cenvat credit that you are losing as dealer, is perfectly Legal and Correct.

Yes you are eligible for such conversion. First of all, you have to surrender your excise dealer registration and thereafter you have to apply for excise registration as Manufacturer of goods, after which you can avail cenvat credit on all the inputs, input services and capital goods used in the manufacture of finished goods.

Further, there is also one way to the issue – You can carry on as excise dealer and simultaneously apply for excise registration for manufacture of goods and become a Manufacturer.

In other words, you can be both Dealer and Manufacturer and can hold both the Registrations.

You may seek further guidance from the Excise Division/Range office in the matter.

AI Summary

Cenvat credit entitlement: converting excise dealer registration to manufacturer registration enables claim of credit and dual registrations may be permitted. Conversion from an excise Dealer registration to an excise Manufacturer registration permits the assessee to avail Cenvat credit on inputs, input services and capital goods used in manufacture. The usual procedure is to surrender dealer registration and obtain manufacturer registration, but an assessee may also hold both registrations concurrently to continue dealer activities while claiming manufacturer credit; procedural and ancillary registration implications should be confirmed with the excise office.