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

AI Summary

Pharma machinery company can claim CENVAT credit for raw materials from unregistered supplier if proper excise invoice issued. A company manufacturing pharmaceutical machinery, registered under the Excise Act, inquired about availing CENVAT credit for raw materials purchased through a supplier not registered under the Excise Act. The supplier acts as a second-stage dealer, procuring excisable goods from a registered dealer. The first respondent advised that if the dealer issues a central excise invoice with the company as the consignee, CENVAT credit can be availed, referencing a CBEC circular and a legal case. The second respondent confirmed that the company can take the credit, as the excise duty is passed through the supply chain to them.