Can consignee take cenvat credit

This query is : Resolved

CA Shyam Sunder Mittal (Querist)
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14 April 2012 We are a manufacturer of excisable goods in thane(mumbai). We sells our finished products through the network of our authorized dealers appointed across India . Now We have got a order from one of our delhi Based dealer who is not registered in Excise. We have raised the invoice charging excise duty & sales tax as bill to ship to delhi Based dealer . Now delhi based dealer endorsed the invoice along with LR copy in the name of manufacturer in transit, who is in Delhi(who is consignee also) .

This transaction in sales tax terms is called E-1 Sale. This transaction in sales tax terms is permitted . My query is , Can delhi based manufacturer take the excise benefit on basis of our invoice along with endorsed GR copy & and commercial invoice of delhi based dealer ?

Please guide, is there any ruling in excise so that cenvat credit can be claimed by manufacturer(consignee)?

Thanks & Regards,

CA. Shyam Sunder
+91-9891456250

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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14 April 2012 Dear Sir,

The Delhi based manufacturer will get the benefit of CENVAT on the basis of your Invoice. Since it is sale in transit and your dealer is not taking benefits of CENVAT. Thanks

CA Shyam Sunder Mittal

CA Shyam Sunder Mittal (Querist)
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14 April 2012 thankxx cs. Deepak pratap ji

can u mail me detail regarding this issue or provison of excise act/ cenvat credit rules...

thanks & regards

ca shyam sunder mittal

+91-9891456250

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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16 April 2012 Dear Sir, If seller mention names both of buyer and consignee, then consignee can take credit of cenvat invoice. Their will not be any problem for taking cenvat credit.

link read:

http://220.227.161.86/20962tg_cenvat_credit.pdf

http://www.dateyvs.com/cenex07.htm