Credit of Excise on goods purchased.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2009 One Company A is purchasing some goods from Firm B who is purchasing the same from C after adding Excise thereon.

My Query is:
1. Whether Firm B be deemed as first stage dealer for the purpose of Excise Act,

2. Can Company A take credit of Excise duty paid by B on goods purchased from C for the purpose of Service tax payable,

3. If Answer of point 2 above is in affirmative is there any specific format or formalities either of parties have to follow?

Arbind Aggarwal

Arbind Aggarwal (Expert)
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05 December 2009 First stage dealer - who buy goods from the manufacturer

Credit can be taken on the basis of invoice issued under rule 11 of Central Excise Rules either by a manufacturer or a trader (importer, first stage dealer or second stage dealer) who is registered with the Central Excise Authority.

All the forms or formats are availble on the cbec.gov.in.