Excise for Dealers – Introduction
A manufacturer of excisable goods can avail MODVAT (now CENVAT) credit of duty paid on the goods purchased from any dealer w.e.f. 04.07.94. The dealer intending to issue modvatable (now Cenvatable) invoices should get themselves registered with the jurisdictional Range Superintendent by following the procedure prescribed in Rule 9 of Central Excise (No.2) Rules, 2001. All the godowns /Store-rooms should be registered separately.A Central Excise Registered dealer should ensure that the prescribed register is maintained for the godown/ Store-room. All the consignments received/ issued from the godown have to be entered in the register (further details in Central Excise Rules and Manual).
The Dealer shall issue the invoices in quadruplicate. The copies of the invoices issued by a first stage dealer and a second stage dealer shall be marked at the top as “FIRST STAGE DEALER” and “SECOND STAGE DEALER” respectively. The invoice issued by a first stage or second stage dealer in the case of imported goods and by a second stage dealer in the case of other goods, shall be duly authenticated by the officer.
The Dealer shall issue one invoice for every consignment dispatched in one batch and at a given time. If a consignment is split into two or more batches, then each consignment is dispatched separately with separate invoices.
Who is a Trader/Dealer?
A Trader/Dealer is someone who purchases and sells goods and maintains an inventory of goods.
A registered Excise dealer is a dealer of Excisable goods who is registered under Central Excise rules, 1944 and on the strength of whose invoice Cenvat credit can be taken.
Who will be covered under Dealer Excise?
The following dealers are covered under Excise for Dealer.
First Stage Dealer
A First Stage Dealer is one who purchases goods directly from any of the following:
· The manufacturer under the cover of any invoice issued in terms of the provision of Central Excise Rules, 2002 or from the depot of the said manufacturer.
· Goods purchased from the premises of the consignment agent of the said manufacturer.
· Goods purchased from any other premises from where the goods are sold by or on behalf of the said manufacturer.
· Goods purchased from an importer or from the depot of an importer.
· Goods Purchased from the premises of the consignment agent of the importer.
Second Stage Dealer
A registered dealer who purchases goods from the First Stage Dealer is called a Second Stage Dealer.
Flowchart on Excise Dealer
The categorization of a dealer as first stage or second stage is not predefined. It is decided during the purchase. Therefore, a dealer may be a first stage dealer or a second stage dealer depending on the type of purchase.