Clarification on excise transaction

[Asked by Guest]

Hi, I need clarification regarding excise invoice titling. 1)If i am purchasing from a Agent of manufacturer and selling to a dealer 2)If i am acting as a Agent of manufacturer and raise invoices to a dealer. Thanks in advance Subramanya

Your query is not very clear, however the explanation is given below:- 1. You should have a dealer's registration & issue 1st stage dealers invoice. 2.There is no such thing as agent of manufacturer in excise law. Either you have to raise invoice as 1st stage dealer or the manufacturer raises directly an invoice on the buyer and you can raise a commercial invoice on the buyer.

Thanks Mr.Khanna, V Khanna Assume iam an Excise Dealer and purchasing goods from an "Agent of Manufacturer". Agent is raising the invoice on behalf of the manufactuer with an invoice title "Sale by consignment Agent"[not commercial invoice]. I want to know that the above procedure followed by the agent is correct or not. With regards, Subramanya

[sudhir V S]

In both the case u have to register as a dealer under CE and can issue Dealer's Invoice or a commercial invoice if no CENVAT is passed.

AI Summary

Excise agent concept invalid: register as dealer and issue a dealer invoice; manufacturer may invoice the buyer.
Excise law does not recognise an "agent of manufacturer" for invoicing; intermediaries must obtain Dealer Registration and, when operating as a dealer, issue a First Stage Dealer Invoice to buyers, or else the manufacturer must issue the tax invoice directly. Intermediaries may supply a commercial invoice only where Cenvat credit has not been passed; labels like "Sale by consignment Agent" do not replace registration or proper excise invoicing obligations.