We are pleased to
release a Tax Alert which gives an update on Circular no. 1003/10/2015-CX dated
5 May 2015 issued by the Central Board of Excise and Customs (CBEC).
The Circular provides clarity on the scope of the provisos inserted in Rule 11(2) of the Central Excise Rules, 2002, regarding direct transportation of goods to consignees without bringing them to the premises of the registered dealer or registered importer.
CBEC clarifies that in case of direct dispatch of goods to the consignee on the directions of an unregistered dealer, credit can be availed by the consignee on the basis of the invoice issued by the manufacturer or registered importer and there is no requirement for the unregistered dealer to get registered for the purpose of passing on the benefit of CENVAT credit to the consignee.
This puts to rest the ambiguity arising out of insertion of the provisos
The Circular provides clarity on the scope of the provisos inserted in Rule 11(2) of the Central Excise Rules, 2002, regarding direct transportation of goods to consignees without bringing them to the premises of the registered dealer or registered importer.
CBEC clarifies that in case of direct dispatch of goods to the consignee on the directions of an unregistered dealer, credit can be availed by the consignee on the basis of the invoice issued by the manufacturer or registered importer and there is no requirement for the unregistered dealer to get registered for the purpose of passing on the benefit of CENVAT credit to the consignee.
This puts to rest the ambiguity arising out of insertion of the provisos
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