Cenvat Credit Taken

This query is : Resolved

CA. Shwetank Vats (Querist)
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07 March 2009 Hello,
1.One Vendor(A&Co.) import 100 Qty. of raw material and pay CD&CVD though bill of entry.
2.After import A&Co supply the same material sales to B&Co through their 5 invoices 75 Nos., but A&Co not register under Excsie i.e.Regn.number not taken by A&co.
3.A&co also send the bill of entry copy after endorsement to B&co.
Sir, My Qyery is as below:-
(a)Can B&Co. take cenvat credit on A&Co invoices in this case that A&Co is not regn. under Excise.
please reply urgently.
Regards

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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08 March 2009 for charging the Excise in invoice one must be Registered under Excise Act, since in your case A & Co. is not Registered so it can not Collect the Excise from B & Co.
Similarly one can not take Cenvat Credit if it is not Registered under Excise
following are conclusion
1)A & Co. can not take Cenvat Credit for CVD paid under Rule 3(1) on import of Goods
2)A & Co. can not collect the CD & CVD from B&Co. separatly
3)B & Co. even if Registered under Excise it can not take Cenvat credit on supply of Goods from A & Co. because it didn't paid any duty because it purchases the Goods from UN-REGISTERED DEALER