First stage and second stage dealer

This query is : Resolved

vinod p kasar (Querist)
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26 May 2016 We have a manufacture unit Name of M/s Shandong Ltd and we purchase Raw Material from M/s Z Ltd which is register as dealer but actually happen in the invoice as under

1) A Ltd is an Importer and sale to B Ltd
2) B Ltd sale to M/s Z Ltd
3) And Z Ltd Sales to M/s Shandong Ltd

It is right as per rule and M/s Shandong Ltd can take cenvat credit

Plz Provide if any link / notification or changes rules

Arun Kumar Singh

Arun Kumar Singh (Expert)
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01 June 2016 Dear Kasar Ji,
The cenvat credit will be available upto second stage dealer. In this transaction you need to consult with any professional. You can avail the cenvat credit on invoice issued by the second stage dealer only.