Importer registration number, Central Excise

[Neeraj Sharma]

We are registered under first stage dealer since Apr'2012 & only purchase imported goods & sale to customer in India. Now can we amend our registration certificate from dealer to importer & for past department can object for cenvat transfer to customer without importer registration? Urgent !

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Rule 9 of Central Excise rules, 2002 stipulates that every person, who produces, manufactures, carries on trade, holds private store-room or warehouse or otherwise uses excisable goods or an importer who issues an invoice on which CENVAT Credit can be taken, shall get registered. The rule was amended by Notification No. 8/2014 CE(NT) dated 28.2.2014 w.e.f. 1.4.2014.

Therefore it is clear that only an importer who issues invoices on which CENVAT Credit can be taken has register with the Department as first stage dealer with effect from 1.4.2014. Since you have already registered as first stage dealer you need not register yourself as importer.

Moreover, according to rule 2 (ij) of CENVAT Credit Rules, 2004 "first stage dealer" means a dealer, who purchases the goods directly from,-

(i) the manufacturer under the cover of an invoice] issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer, under cover of an invoice; or

(ii) an importer or from the depot of an importer or from the premises of the consignment agent of the importer, under cover of an invoice.

Therefore in my opinion you need not take a fresh registration.

[Neeraj Sharma]

Dear Rajagopalan Ranganathan ji,

I agree with you but as per Rule 9(1) of Central Excise Rules, 2002 of Every person, who produces, manufactures, carries on trade, holds private store-room or warehouse or otherwise uses excisable goods, shall get registered:

Provided that a registration obtained under rule 174 of the Central Excise Rules, 1944 or rule 9 of the Central Excise (No.2) Rules, 2001 shall be deemed to be as valid as the registration made under this sub-rule for the purpose of these rules.

Registration is necessary but which registration it is not mentioned any where. As online registration form it is shown one option a importer. it means registration as importer and registration as first stage dealer is different in nature.

If it is so then first stage dealer who is doing importation have to get new registration under importer category?

 

 

[Rajagopalan Ranganathan]

Sir,

No. it is not necessary. The amended rule 9 of Central Excise Rules, 2002 says that an importer has to register himself as first stage dealer to issue cenvatable invoice. It does not say that a first stage dealer has to register as importer for issuing cenvatable invoices. Therefore in my view a first stage dealer who has already registered with the Department need not register himself as importer for issuing cenvatable invoices in respect of goods imported by him.

[Hardik Shah]

You would need a new registration as Excise Importer because vide amendments undertaken in 2014, the Government has created a new class of assessee's called importer. If you refer to the definitions quoted by Rajagopalan Sir, you would note that an FSD is a person who procures the goods from a manufacturer / Importer. Accordingly, one can say that if manufacturer is required to issue an invoice, the importer would also since they both are at the same footing.

Even the ACES system has been amended to provide separate registrations for those persons who imports the goods meant for trading.

Looking holistically, in my view, it is advisable that a new 'Excise Importer' registration is required to be obtained.

Regards,

Hardik Shah.

[Neeraj Sharma]

Dear Hardik Ji,

Ok now we are amending from dealer to importer but please can you tell me for past period from april'2014. Department can issue SCN to us or no? or any cenvat issue which we already passed to customer?

[Hardik Shah]

Department can issue you a notice for non-following the correct provisions. However, it would be from procedural point of view with nominal penalty, which in my view is defendable. With respect to the issue regarding CENVAT Credit to your customer, in my opinion, Department will raise the issue during the periodical audits. However, it is also a procedural matter and hence, the issue will be defenable on the premise that Courts and Tribunal in various cases have held that substantial benefit of credit cannot be denied on procedural ground.