Is CENVAT credit on transit sale allowed only if made through Registered dealer?

Thanks for highlighting the live burning issue

We have become expert in doubting law makers’ intention to give relief. May be due to our past experience where intention has not been properly worded in rules, notifications etc.

My view is as under

1.It is a beneficial provision given to First Stage & Second Stage Dealers who have to receive goods physically for issuance of CENVATTABLE invoice as of 28.02.2015

2.Rule 9 of CCR speaks about eligible documents for CENVAT credit. In sub-rule (2) of the said rule it has been made mandatory that the document should contain all the particulars as per CER. If we go to Rule 11(2) of CER one can find that ‘consignee’ as mentioned in the eligible document can take credit

3.In addition to the consignee, Government wanted to allow ‘buyer’ also to take credit by sending materials directly to job worker. Hence the newly added second proviso to Rule 11(2) of CER

4.In the same line relaxation has been provided for ‘Registered dealers’ also by incorporating third proviso to Rule 11(2) of CER

5.It is not restricting manufacturers' invoice ineligible for credit or requiring all unregistered dealers to go for registration

I invite learned readers to share their view points

Posted by
G. Mani

govindan_mani govindan_mani 14/04/2015