Clarification regarding Cenvat Credit in transit sale through dealer

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..... ural requirement after the amendment where an indenting or unregistered dealer negotiates transit sale. For ease of reference these two provisos are reproduced below - Provided also that if the goods are directly sent to any person on the direction of the registered dealer, the invoice shall also contain the details of the registered dealer as the buyer and the person as the consignee, and that person shall take CENVAT credit on the basis of the registered dealer s invoice: Provided also that if the goods imported under the cover of a bill of entry are sent directly to buyer s premises, the invoice issued by the importer shall mention that goods are sent directly from the place or port of import to the buyer s premises. 2. Cl .....

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..... t can be availed. No amendments have been made regarding registration requirements also. 5. Various specific issues referred to by the trade are clarified as follows - (i) Where a registered dealer negotiates sale of an entire consignment from a manufacturer or a registered importer and orders direct transport of goods to the consignee, credit can be availed by the consignee on the basis of invoice issued by the manufacturer or the registered importer. In such cases no Cenvatable invoice shall be issued by the registered dealer in favour of the consignee though commercial invoice can be issued. Where a registered dealer negotiates sale of goods from the total stock ordered on a manufacturer or an importer to multiple buyers and or .....

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..... or warehouse at the port to the buyer s premises, the amendment prescribes that for such movement the factum of such direct transport to the buyer s premises needs to be recorded in the invoice. 6. It may be noted that the new provisos are meant to improve the ease of doing business by providing an additional facility to the registered dealer or importer for direct dispatch of goods from the manufacturer to the consignee, when he is issuing Cenvatable invoice,. They do not withdraw any past facility. These amendments should therefore be harmoniously interpreted with the existing rules and circulars in conformity with the legal provisions, keeping the intention of the Government in mind. Difficulty faced, if any, should be brought to the .....

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