17 May 2012
Hi, My company is an authorised distributor of a DG Set manufacturer in India. We are contesting for a tender for 'Procurement of DG Sets' at a oil exploration PSU is Gujarat. Our company is registered in Assam.
The issue is that the buyer intends to use the supplied products in a PEL/ML Area and is requesting for appropriate exemptions. We have never supplied any goods to a PEL/ML are and hence are unsure about how we should proceed. We have service tax and sales tax registration. A gentleman with experience in the said area adviced me that we should get a 'First Stage Dealer' registration from the Excise Office in Assam. This will make us eligible to pass on the excise credit to the end user. Please care to explain how we should go about registrations, if any and how we should bill the end user? Can I perform an E1 sale (sale in transit) and issue C form to the manufacturer?
18 May 2012
It is doubtful that any supply to PEL/ML area attract andy Central Excise exemption. You should ask your buyer as to which exemption they are talking. Even if some exemption is available, you cannot extend any exemption to them as Central Excise dealer, and thus taking a dealer registration will not solve any problem. Off course you can do transit sale for saving CST, and it is independent of Central Excise procedures.
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