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Central excise registration

Joginder Singh Bhatia (PROPRIETOR) (37 Points)

31 October 2011

A is small trader and Not registred with central Excise & buys metal scrap from B who is manufactrurer by paying Central excise duty.

Now A want to sell the material purchased from B to C ( C is big scrap dealer and has central excise registration).

Question- whether A can pass on to C Excise duty paid by him while purchasing from B. or he need to register with central Excise before he charges excise duty.

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4 Replies

Kunal (Risk Analyst) (299 Points)
Replied 31 October 2011

Without registration 'A' cannot pass on the credit. He needs to get registered under Rule 9 of CER 2002. He wil then, assuming the status of FIRST STAGE DEALER can pass on the credit by issuing invoice under rule 11(7) of CER 2002. This is coz only FSD n SSD as a trader can pass the credit to the buyer manufacturer and their exist a mandatory requirement under rule 9 of CER 2002 for their registration.

1 Like

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R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 31 October 2011

I agree with Roobak.........Dealers only can pass the credit amount to buyer

1 Like

vinitha vivekanandan (Accounts Executive) (25 Points)
Replied 23 November 2011

Dear All,

If a firm is transfered to a new place,do we have to get permission letter from the AC for transfer of credit underlying in our old premises.

Please reply

Thanks & Regards

Vinitha

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 25 November 2011

There is no such permission letter required for transfer of credit under excise law. If you read Rule 10 of cenvat credit, it clearly allows transfer credit on inputs, input in process and capital goods

Above credit is allowed if the stock of inputs as such or in process, or the capital goods is also transferred along with the factory to the new site and the inputs, or capital goods, on which credit has been availed of are duly accounted for to the satisfaction of the Deputy Commissioner of Central Excise or, as the case may be, the Assistant Commissioner of Central Excise.
.

Regards

Dayananda