Eligibility of documents issued by importers during 2012-13 for credit purpose

[Himansu Sekhar]

Sir,

My query is

The importers were added in rule 9 of CE rules for taking regn wef Dec,13

Before that they were passing credit as the dealers after taking regn

Dept. Many times objects this as ineligible since the invoice issued by importers is not a valid document before 2013.

Is there any circular/instructions

Kindly clarify

Regards

[YAGAY andSUN]

Earlier to the above period Importer were allowed to get the refund of SAD if the goods imported by them are sold as such.

[Himansu Sekhar]

No, it is not about SAD. Only. Even today SAD is refunded if not passed on. It is about the credit of all the components ex cept. Customs duties and cess.

[YAGAY andSUN]

We could not find any relevant circular/notification prior to year 2013.

[Himansu Sekhar]

My research on the said subject culminates with the following points

A. The notf. No. 32/94-ce non tariff allowed the credit on the basis of invoices issued by the importer.

B. With the amendments vide notf. 5/95 the importers were required for regn.

C. In the new rule 9 of CE though the specific mention was not there for importers, they were like any other traders to take regn as dealers.

D. Moreover at the relevant time the invoice issued by the importers was relevant document for taking credit under rule 9 of CCR.

E. It emerges that the specific requirement of regn was not there to take regn even if they can issue invoices.

F. A draft circular was circulated inviting comments in this regard to mitigate such problems

F. Perhaps due to the noon requirement of regn., the circular was not issued

AI Summary

Importer invoice eligibility for input credit: invoices that evidenced sale supported credit despite limited specific registration guidance. Importer-issued invoices were treated as relevant documents to claim credit for non-customs components where they evidenced a sale by the importer; subsequent amendments required importer registration but did not explicitly differentiate importers from other traders, and no finalized circular prior to 2013 resolved the procedural uncertainty.