Invoices by first stage or second stage dealers--- Marking of - Central Excise - Trade Notice No. 10/07

Commissioner of Central Excise, Delhi - IV Trade Notice No. 10/07 dated 18-05-2007 Invoices by first stage or second stage dealers--- Marking of Attention of the trade and industry is invited to Rule 9 (5) of the Cenvat Credit Rules, 2004, which provides that the burden of proof regarding the admissibility of the Cenvat Credit lies upon the manufacturer or provider of out put service taking such Credit. Rule 9 (1)(a)(iv) of the said Rules specifies invoice issued by a First stage dealer of a second stage dealer as a valid document for taking Cenvat Credit. 2. It has been noticed at the time of audit etc. that Registered dealers are not prominently showing whether they are first stage dealer or second stage dealer. Further, in some cases it has also been observed that the particulars of the original manufacturers are also not shown on the invoices. This requires enquiry causing unnecessary hardship to the department as well as the manufacturers and results into litigation. 3. In exercise of the powers conferred by Rule 31 of Central Excise Rules 2002, all the registered dealers are hereby instructed that the invoice issued by a first stage dealer or a second stage dealer shall be marked at the top in bold capital letter as FIRST STAGE DEALER or SECOND STAGE DEALER as the case may be. All the invoices of registered dealer shall bear a "First Stage/Second Stage Dealer" certificate in the following format. FIRST STAGE DEALER SECOND STAGE DEALER "CERTIFICATE" "CERTIFICATE" Certified that the goods covered under Certified that the goods covered under this invoice were received directly this invoice were:- (a) the premises/depot/premises of the consignment agent of the importer M/s…………………………… ………………………………. (b) factory/depot/consignment agent/ authorized premises of the manufacturer. M/s…………………………… ……………………………….. for (name of the dealer) (c) Received from M/s………… ………………………………… Who are the first stage dealer of: M/s……………………………… ………………………………….. for (name of the dealer) Place:Faridabad Date: Auth. Signatory 4. The dealer should clearly strike off the stage which is not applicable and invariably mention the duty paying and other particulars of the original manufacturer/importer. 5. All Trade Associations are requested to give wide publicity to the contents of this Trade Notice amongst their members/constituents.