CENVAT query

This query is : Resolved

Mandar (Querist)
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21 February 2011 Dear All,

We are a manufacturer of excisable goods in Haryana. 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 Gujrat Based dealer who is not registered in Excise. We have raised the invoice charging excise duty & sales tax as bill to ship to Gujrat Based dealer . Now Gujrat based dealer endorsed the invoice along with LR copy in the name of another manufacturer in transit, who is in Gujrat .

My query is , 1) Can Gujrat based manufacturer take the excise benefit on basis of our invoice along with endorsed LR copy & and commercial invoice of Gujrat based dealer ?

Please guide, is there any ruling in excise so that cenvat credit can be claimed by 2nd manufacturer received goods from non manufacture register delear on bill to ship to basis from 1st manufacturer ?

2) What will be answer if Gujrat based delear is unregistered delear?

Regards,

CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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21 February 2011 Manufacturer in Gujarat who buys in transit goods from the unregistered Gujarat dealer can take CENVAT credit.There is no specific rule for this. The documents shall be sufficient to prove that good suffered duty and used by the manufacturer for manufacture of excisable goods.

Mandar

Mandar (Querist)
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22 February 2011 Thanks for your reply.

but can you tell me that this is applicable for Gujarat only or it is applicable all India.

& please explain what will be the case if LR is not endorse, GRN is prepaired & subsequently sale invoice is raised?

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CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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22 February 2011 Cenvat Credit rules and rules relating E-1 sales are equally applicable to all the states. Instead of E-1 sale, if the Gujarat dealer raises his own bill, the final buyer cannot take cenvat credit unless the Gujarat dealer is registered with Central excise as first stage/second stage dealer and the invoice is in prescribed form.