Dealers registration

[ASHOK AMIN]

Dear Experts,

We are a maunfacturing unit and we also undertake imports and sell as it is to local customers. The import sales are undertaken in our trading unit. Now, the customers are demanding cenvat credit benefits. My querry to respected experts is;

1) which type of registration certificate is required to be obtained, whether first stage dealer or importer's,

2) if we purchase from local market besides import, than which licence will be suitable for us, i.e first stage dealer or importer's on the basis of which the customers can avail cenvat credit.

3) if any customer who doesn't required cenvat benefits than on which document should we send the goods. Can we store those goods in the dealer's/importers's premises ? Can we enter those details in RG23D register or should we maintain separate register for the same.

Please give us the solution as soon as possible.

[KASTURI SETHI]

Sh.Amin Ji,

Under Rule 9 of CE Rules, 2002, Form A-1 has been prescribed for 7 categories of goods/activities to be carried out. These are mentioned at serial no.3. You are to tick mark your activities i.e. Importer, First Stage Dealer etc. Registration will be issued accordingly. Form is same for all activities. You cannot enter non-excisable goods in RG23 D Register. You can keep non-excisable goods in your store but you will have to issue separate invoice book. Separate register should be maintained for each category of goods.You can maintain separate invoice books for each category of goods for identification.

[Suryanarayana Sathineni]

Dear Mr. Ashok Ji,

Please note, in the circumstances explained by you that Besides trading of imported goods, you also would like to deal with domestic goods which includes exempted goods, better take Registration from Central Excise as DEALER.

Further, though it was mandated that every importer who wants deal imported goods and intended to pass on the credit to the customers by issuing cenvatable invoices, should get himself registered as IMPORTER. In this context, a question raised whether an existing Registered dealer also required to register again as importer if he want to deal with imported goods. If my rememberence goes right, it was clarified that in that case separate registration is not required.

In my view, one Dealer Registration is sufficient and there is no need to specify 1st or 2nd stage dealer because, basing on the type of transactions handled by you under that Registration decides the category.

Further, according to me there is no bar in handling non excisable /exempted goods under Dealer's Registration and you can account all types of goods in RG23D Register and mention the amount of duty paid on the purchase of dutiable goods and put a dash in case of exempted / non excisable goods and while issuing the dealers invoice at the time of sale the duty amount paid to be shown accordingly.

Best Regards

Suryanarayana

[ASHOK AMIN]

Thanks for the reply.

[KASTURI SETHI]

Sh. Amin Ji,

Go through detailed replies on this issue in this forum. ID issue no.3555 dated 12.11.11. See the reply of Sh.Babu K Rao particularly.

AI Summary

Dealer registration under central excise rules determines eligibility to issue cenvatable invoices and affects recordkeeping requirements. Registration is governed by Rule 9 of the Central Excise Rules, 2002 via Form A-1: taxpayers must indicate activities (Importer, Dealer, etc.) and receive registration accordingly. A single dealer registration can, in practice, cover import and domestic trading without a separate importer registration. For recordkeeping, advisers differ: one view prohibits entering non-excisable goods in the RG23D Register and recommends separate invoice books and registers per category; another allows listing exempt items in RG23D with duty shown where applicable and exemptions marked.