removal of products to un-registered dealers

[felix ka]

Hai experts,

What are the precautions to be taken when a manufacturer of goods covered under the MRP valuation scheme intends to sell his products to un-registered dealers? what should be the nature of invoicing? can he raise a 'commercial invoice' only without indicating the excise duty paid? (neither the dealers nor the customers want to take CENVAT Credit.

[NEERAJ KUMAR, RANCHI]

No, If you are a central excise assesse, you can not remove your goods without proper invoice under rule 11 of central excise rules 2011, whether your buyer is a registered dealer or not. Even if your buyer doesnot want a cenvat credit, you have to follow the procedure as laid down in the rules.

[YAGAY andSUN]

Abatement on some products are coupled with goods under MRP Valuation under section 4A of the Central Excise Act, 1944 as amended time to time. You would have to pay appropriate central exicse duty on removal of goods for home consumption.  If your customer is not first stage or second stage dealer then you can raise commercial invoice to them but such commercial invoice would also have all the ingredients of Excise invoice as mentioned under Rule 11 of the CER 2002.

AI Summary

Excise invoicing compliance: manufacturers must issue proper excise compliant invoices even when selling to unregistered dealers. Manufacturers removing MRP valued goods to unregistered dealers must comply with excise invoicing and duty obligations regardless of the buyer's registration or desire for CENVAT credit; commercial invoices to unregistered purchasers must nonetheless include the essential elements required for an excise invoice under the excise rules.