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

Manufacturers Must Invoice and Pay Excise Duty for Sales to Unregistered Dealers Under Rule 11 of Central Excise Rules A manufacturer inquires about selling products under the MRP valuation scheme to unregistered dealers, questioning the invoicing process and whether excise duty should be indicated. A respondent clarifies that under Rule 11 of the Central Excise Rules 2011, goods cannot be removed without a proper invoice, regardless of the buyer's registration status or desire for CENVAT credit. Another respondent adds that appropriate excise duty must be paid on goods removed for home consumption, and even a commercial invoice should include all elements of an excise invoice as per Rule 11 of the Central Excise Rules 2002.