Who is a First Stage Dealer?
Nov 18, 2009 Excise Duty
Firstly let us take the issue. It relates to the concept of transit sales. Say for example, “X” purchase goods from a manufacturer and sell to say “Y”. The goods are directly dispatched to “Y”, and “X” is an intermediate person. The question is whether “Y” is a first stage dealer? It is possible that “X” sells it to “A”, who sells it to “B”, who in turns sells it to “C”, who later sells to “Y” and goods are directly dispatched to the “Y” from the manufacture’s premises. In other words when there are more than one, say 5 intermediate persons before the goods are dispatched to “Y”. The issue is again the same, “whether the “Y” is a first stage dealer?” The invoice clearly shows that these persons are the purchaser from the manufacturer.
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Tags: central excise act, central excise rules, cenvat credit rules 2004, deferred payment, First Stage Dealer, Invoice, meaning of First Stage Dealer, purchaser, transit sale, transit sales