31 October 2009
As per rule 7(3) of Cenvat Credit Rules, Cenvat credit in respect of inputs and capital goods purchased from a first stage dealer or second stage dealer shall be allowed only if the dealer maintains records indicating the fact that the inputs or capital goods were supplied from the stock on which duty was paid by the manufacturer / producer of such goods. Thus, the dealer issuing the invoice should maintain record of goods received and sold. The records of dealer can be inspected by Excise authorities on obtaining permission from Assistant/Deputy Commissioner, Central Excise. All records and rg23-d must be preserved for a period of five years.
The dealer is required to file a quarterly return to Superintendent of Central Excise, in prescribed form No. 2, within 15 days from close of each quarter. [Rule 7(6) of Cenvat Credit Rules].
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