AVAILMENT OF CENVAT CREDIT

[SURYAKANT MITHBAVKAR]

We are manufacture of pharmaceutical machinery registered under Excise Act.

we have place order to our supplier who is not registered under Excise Act. In same order supplier want to procure some excisable goods from dealer wherein our suppliers role comes second stage dealer whether we can avail this credit or not.

for details I will give you following examples

 

A ==  Manufacture of  Material (Raw Materials)

B== Dealer ( who is procure materials from A and issued of Invoice under Rule 11 of C.E. Rule) showing Buyer is C and  consignee is D

C== Supplier  (To whom we have issued purchase order for material and not registered   under Excise Act.)

D== Ourselves (Mfg. of Final Products and want to take cenvat credit of Raw material)

Pl. Advice

[NEERAJ KUMAR, RANCHI]

In my view if the dealer "B" is registered under central excise as dealer and he issues central excise invoice mentioning your name as consignee, there should be no problem in availing cenvat credit by you. Please refer to CBEC Circular No. 96/7/95-CX dated 13.2.95. Also refer to case of CCE Vs Balaji Iron (2008 (1) TMI 796 - CESTAT, BANGALORE) = (2009) 236 ELT 595 (CESTAT)  . Here "C" can issue a commercial invoice to You that is "D".

[r.rajkumar kumar]

YES  SINCE A PAD EXCISE DUTY AND B PASSED ON TO  C AND C PASSEDON TO D  WHO IS REGISRTRED IN EXCISE AND THE INPUT IS NOT AVAILED BY ANYBODY D  CAN TAKE IT AS INPUT

EVEN THOUGH C IS NOT REGISTRED. TKW

AI Summary

CENVAT credit entitlement where dealer issues an excise invoice naming the manufacturer enables credit if duty paid and input unclaimed. Availability of CENVAT credit turns on the documentary chain: if a registered dealer issues a central excise invoice naming the manufacturer as consignee and excise duty has been paid without the input being claimed by another taxable person, the manufacturer may claim credit even when the contractual supplier is unregistered. A commercial invoice from the unregistered supplier together with the dealer's excise invoice can support the claim; proper invoicing and proof of duty payment are decisive.