Excise for 1st dealers

Excsie duty is liability on the part of dealer which he needs to collect and pay to government. As it is liability it will show credit balance only. As and when dealer discharges liability he will debit this account with amount paid. Ideally it will have credit balance or zero balance. In case of excess payment to govenment above the actual liablity it will show debit balance.

Regards

Dayananda

dealers are not entitled to charge or collect excise. they neither required to pay any ED in cash to govt.

they have to account their purchase including excise duty and issue their commercial bills including excise duty.

as a registered dealer they have to pass on the duty content which was charged by factory to the next buyer, so they have just to issue cenvatable invoice.

if one party does not ask for ED invoice, that does not mean that ED was saved by the dealer, but he will sell the goods with commercial invoice, and cum duty. 

agree with sharma sir. 1st stage dealer is just like a transferee which pass same excise to his buyer.