Excise duty is a indirect tax on manufacturing of goods then why some dealers also register with central excise is there any benefit on geeting registration by by dealer ? Please clarify
02 March 2012
There is also concept of first stage and second stage dealers. Goods are normally soled by manufacturers not directly but through dealers, in this case chain of Cenvat credit is broken. Therefore, some dealers are registered for the purpose of passing on credit to buyers so as to remain credit chain intact
As per Article 265 of Constitution of India, no tax can be levied without the authority of Law. Accordingly, the Seventh Schedule of the Constitution provides three lists, which define the powers of the Legislature. The validity of the tax is decided in terms of the nature of the tax and the entry in the above list of Seventh Schedule. List I deals with the Legislative posers exclusively conferred to the union (i.e. Central Government). In this list Entry 84, gives powers to impose Central Excise Duty by Union Government.
for more information: http://www.legalserviceindia.com/income%20Tax/Tax3.htm
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