{"id":170,"date":"2015-06-24T13:22:47","date_gmt":"2015-06-24T13:22:47","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=170"},"modified":"2022-10-14T23:58:12","modified_gmt":"2022-10-14T18:28:12","slug":"cbec-clarifies-dealer-registration-not-mandatory-for-transit-sale-background","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/cbec-clarifies-dealer-registration-not-mandatory-for-transit-sale-background\/","title":{"rendered":"CBEC &#8211; Dealer Registration not mandatory for transit sale"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2e6afbed1f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2e6afbed1f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/cbec-clarifies-dealer-registration-not-mandatory-for-transit-sale-background\/#CBEC_clarifies_%E2%80%93_Dealer_Registration_NOT_mandatory_for_transit_sale\" title=\"CBEC clarifies \u2013 Dealer Registration NOT mandatory for transit sale\">CBEC clarifies \u2013 Dealer Registration NOT mandatory for transit sale<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/cbec-clarifies-dealer-registration-not-mandatory-for-transit-sale-background\/#Clarification_issued_by_the_CBEC\" title=\"Clarification issued by the CBEC:\">Clarification issued by the CBEC:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/cbec-clarifies-dealer-registration-not-mandatory-for-transit-sale-background\/#The_Board_has_clarified_as_under\" title=\"The Board has clarified as under:\">The Board has clarified as under:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/cbec-clarifies-dealer-registration-not-mandatory-for-transit-sale-background\/#Procedure_as_prescribed_in_the_third_proviso_of_rule_112_shall_be_applicable_in_such_case\" title=\"Procedure as prescribed in the third proviso of rule 11(2) shall be applicable in such case.\">Procedure as prescribed in the third proviso of rule 11(2) shall be applicable in such case.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/cbec-clarifies-dealer-registration-not-mandatory-for-transit-sale-background\/#CBEC_levied_20_percentage_export_duty_on_Brown_Rice_Export_of_Rice_in_husk_other_rice_products_wef_Sep_09_2022\" title=\"CBEC levied 20 percentage export duty on Brown Rice, Export of Rice in husk &amp; other rice products w.e.f Sep 09, 2022\">CBEC levied 20 percentage export duty on Brown Rice, Export of Rice in husk &amp; other rice products w.e.f Sep 09, 2022<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CBEC_clarifies_%E2%80%93_Dealer_Registration_NOT_mandatory_for_transit_sale\"><\/span><span style=\"color: #000080;\"><strong>CBEC clarifies \u2013 Dealer Registration NOT mandatory for transit sale<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Untitled22-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1729\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Untitled22-1.png\" alt=\"www.carajput.com;Service Tax Update\" width=\"776\" height=\"279\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Untitled22-1.png 776w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Untitled22-1-300x108.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Untitled22-1-768x276.png 768w\" sizes=\"(max-width: 776px) 100vw, 776px\" \/><\/a><\/p>\n<p><span style=\"color: #993300;\"><strong><span style=\"text-decoration: underline;\">Background<\/span><\/strong><strong><span style=\"text-decoration: underline;\">:<\/span><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Vide Notification No. 8\/2015-CE. (NT) Dated 1<sup>st<\/sup>\u00a0March 2015-05-08, the following proviso was added to Rule 11(2) of the Central Excise Rules, 2002 <span style=\"color: #3366ff;\">(<strong>the <a href=\"https:\/\/carajput.com\/services-excise-consultancy.php\">Excise Rules<\/a><\/strong>)<\/span><\/p>\n<p style=\"text-align: justify;\">\u201cProvided also that if the goods are sent directly to any person on the direction of the\u00a0registered dealer, the\u00a0invoice\u00a0shall also contain the details of the registered dealer as the buyer and person as the consignee, and that\u00a0person shall take Cenvat credit on the basis of the registered dealer\u2019s invoice.<\/p>\n<p style=\"text-align: justify;\">Provided also that if the goods imported under\u00a0the cover\u00a0of a bill of entry are sent directly to buyer\u2019s\u00a0premises, the invoice issued by the\u00a0importer\u00a0shall mention that goods are sent directly from the place or port of import to the buyer\u2019s premises.\u201d<\/p>\n<p style=\"text-align: justify;\">In\u00a0view\u00a0of the newly inserted provisos, some field officers took the view that whoever orders goods to the Manufacturer and directs the Manufacturer to send the goods to ultimate user directly are required to take \u201cDealer\u2019s\u201d Registration.<\/p>\n<p style=\"text-align: justify;\">They insisted that Cenvat credit will not be allowed on the strength of Manufacturer\u2019s invoice when the goods are sold through a Non-Registered Dealer.<\/p>\n<p style=\"text-align: justify;\">This view was also endorsed recently by the Joint Commissioner, Office of the Principal Chief Commissioner of Central Excise, Mumbai Zone-I, who clarified that since Cenvat credit will be available on Registered Dealers\u2019 Invoice, hence registration of Dealer with Central Excise is must from March 1, 2015.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Clarification_issued_by_the_CBEC\"><\/span><span style=\"color: #993300;\"><strong><span style=\"text-decoration: underline;\">Clarification issued by the CBEC:<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The Central Board of Excise and Customs (<strong>\u201c<\/strong>the CBEC\u201d\u00a0or\u00a0\u201cthe Board<strong>\u201d<\/strong>) vide\u00a0<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/u.camukeshbansal.com\/camukeshbansal\/lt.php?id=ekwECQgIUlAADB5UVQEFDE0=BQFaXQ5JFg8IVQsdSkAFRlFaTUpZIwRaWAsIS1tbVA==\"><strong>Circular No. 1003\/10\/2015-CX dated May 5, 2015<\/strong><\/a><\/span>\u00a0(\u201cthe Circular<strong>\u201d<\/strong>) has clarified 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\u00a0goods from\u00a0the manufacturer to the consignee, when he is issuing Cenvatable invoice.<\/p>\n<p style=\"text-align: justify;\">\u00a0They do not withdraw any past facility.\u00a0These amendments should therefore be harmoniously interpreted with the existing Rules and\u00a0Circulars\u00a0in conformity with the legal provisions, keeping the intention of the\u00a0Government\u00a0in mind.<\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"The_Board_has_clarified_as_under\"><\/span>The Board has clarified as under:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">\u201c(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.<\/p>\n<p style=\"text-align: justify;\">In such\u00a0cases no\u00a0Cenvatable invoice shall be issued by the registered dealer in favour of the consignee though commercial invoice can be issued.<\/p>\n<p style=\"text-align: justify;\">Where a registered dealer negotiates sale of goods from the total stock ordered on a manufacturer or an importer to multiple buyers and orders direct transportation of goods to the consignees and the manufacturer or the importer is willing to issue\u00a0individual\u00a0invoices for each sale in favour of the consignees for such individual sale, the same procedure shall\u00a0apply.<\/p>\n<p style=\"text-align: justify;\">(ii) Where a registered dealer negotiates sale by splitting a consignment procured from a manufacturer or a registered importer and issues Cenvatable invoices for each of the sale,\u00a0it would now be possible for the dealer to order direct transport of the\u00a0consignments\u00a0as per the individual sales to the consignee without bringing the goods to his godown.<\/p>\n<p style=\"text-align: justify;\">This would save time and transportation cost for the dealer adding to ease of doing business.\u00a0This is a new facility which flows from the amended provisions.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Procedure_as_prescribed_in_the_third_proviso_of_rule_112_shall_be_applicable_in_such_case\"><\/span><span style=\"color: #000080;\"><strong>Procedure as prescribed in the third proviso of rule 11(2) shall be applicable in such case.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">(iii)\u00a0Where a un-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.<\/p>\n<p style=\"text-align: justify;\">As the dealer is not registered, there is no question of issuing any Cenvatable invoice by him. Such dealers as in the past can continue to be un-registered.<\/p>\n<p style=\"text-align: justify;\">(iv) Where goods are sold by the registered importer to an end-user (say a manufacturer) who would avail credit on the basis of importer\u2019s invoice and the goods are transported directly from the port or warehouse at the port to the buyer\u2019s premises, the amendment prescribes that for such movement the factum of such direct transport to the buyer\u2019s premises needs to be recorded in the invoice.\u201d<\/p>\n<p style=\"text-align: justify;\">The above stated clarification has not only brought a sigh of relief for the Dealers, but has also granted additional benefits like direct transport in case of split consignments, an appreciating move of the CBEC towards\u00a0\u201cEase of doing business\u201d.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"CBEC_levied_20_percentage_export_duty_on_Brown_Rice_Export_of_Rice_in_husk_other_rice_products_wef_Sep_09_2022\"><\/span><span style=\"color: #000080;\"><strong>CBEC levied 20 percentage export duty on Brown Rice, Export of Rice in husk &amp; other rice products w.e.f Sep 09, 2022<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The Central Board of Excise and Customs has issued Notification to levy export duty on the export of Rice in husk, semi-milled, Brown Rice, or wholly-milled rice, whether or not polished or glazed (Basmati rice and other than Parboiled rice) at rate of 20% w.e.f. 09 Sep, 2022. (<strong><em>Customs dated Sept 08, 2022- Notification No. 49\/2022<\/em><\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>CBEC clarifies \u2013 Dealer Registration NOT mandatory for transit sale Background: Vide Notification No. 8\/2015-CE. (NT) Dated 1st\u00a0March 2015-05-08, the following proviso was added to Rule 11(2) of the Central Excise Rules, 2002 (the Excise Rules) \u201cProvided also that if the goods are sent directly to any person on the direction of the\u00a0registered dealer, the\u00a0invoice\u00a0shall &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[2650,2742,2763,2762,1699],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/170"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=170"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/170\/revisions"}],"predecessor-version":[{"id":23493,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/170\/revisions\/23493"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}