Importers/FSD/SSD under Central Excise Act

Rule 9 of Central Excise Rule 2002:

Every person, who produces, manufactures, carries on trade, hold private store room or warehouse or otherwise uses excisable goods or  importer who issue an invoice on which CENVAT credit can be taken shall get registered.

Rule 9 was amended to include importer vide notification 8/2014.

Changes have been brought in the central excise registration applications form (Form A-1) to include the importers under the list of applicants vide notification 10/2014.

CBEC has exempt the person who carries on wholesale trade or deals in excisable goods except first stage dealer or second stage dealer as defined in CENVAT Credit Rules, 2001 vide notification 36/2001

Rule 11 of Central Excise Rule 2002:

(7) The provisions of this rule shall apply mutatis mutandis to goods supplied by an registered importer or  a first stage dealer or a second stage dealer

Provided that in case of the first stage dealer receiving imported goods under an invoice bearing an indication that the credit of additional duty of customs levied on the said goods under sub-section (5) of section 3 of the Customs Tariff Act, shall not be admissible, the said dealer shall on the resale of the said imported goods, indicate on the invoice issued by him that no credit of the additional duty levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 shall be admissible;

Provided further that in case of the second stage dealer receiving imported goods under an invoice bearing an indication that the credit of additional duty of customs levied on the said goods under sub-section (5) of section 3 of the Customs Tariff Act, 1975 shall not be admissible, the said dealer shall on the resale of such imported goods, indicate on the invoice issued by him that no credit of the additional duty levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 shall be admissible.

Explanation– For the purposes of this rule, “first stage dealer” and “second stage dealer” shall have the meanings assigned to them in CENVAT Credit Rules, 2002.

Rule 22 of Central Excise Rule 2002:

(1) An officer empowered by the principal commissioner or commissioner  in this behalf shall have access to any premises registered under these rules for the purpose of carrying out any scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.

(2)  Every assessee, an importer who issue an invoice on which CENVAT credit can be taken and first stage and second stage dealer shall furnish to the officer empowered under sub-rule (1), a list in duplicate, of

1. all the records prepared and maintained for accounting of transaction in regard to receipt, purchase, manufacture, storage, sales or delivery of the goods including inputs and capital goods, as the case may be;
2. all the records prepared and maintained for accounting of transaction in regard to payment for input services and their receipt or procurement; and

• all the financial records and statements (including trial balance or its equivalent).

(3) Every assessee, an importer who issue an invoice on which CENVAT credit can be taken and first stage dealer and second stage dealer shall, on demand make available to the officer empowered under sub-rule (1) or the audit party deputed by the principal commissioner or Commissioner or the Comptroller and Auditor General of India or cost accountant or chartered accountant nominated under section 14A or section 14AA of the Act,

1. the records maintained or prepared by him in terms of sub-rule (2);
2. the cost audit reports, if any, under section 233B of the Companies Act, 1956 ( 1 of 1956); and

• the Income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 ( 43 of 1961),

for the scrutiny of the officer or audit party or cost accountant or chartered accountant, within the time limit specified by the said officer or audit party or cost accountant or chartered accountant, as the case may be.

Explanation– For the purposes of this rule, “first stage dealer” and “second stage dealer” shall have the meanings assigned to them in CENVAT Credit Rules, 2004.

Rule 2 of Central Credit Rule 2004:

(ij) “First stage dealer” means a dealer, who purchases the goods directly from,-

1. 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
2. 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

(s) “Second stage dealer” means a dealer who purchases the goods from a first stage dealer.

Rule 9 of Central Credit Rule 2004:

(1) The CENVAT credit shall be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the following documents, namely

1. an invoice issued by
2. a manufacturer for clearance of inputs or capital goods from his factory or depot or from the 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
3. a manufacturer for clearance of inputs or capital goods as such

• an importer

1. an importer from his depot or from the premises of the consignment agent of the said importer if the said depot or the premises, as the case may be, is registered in terms of the provisions of Central
   Excise Rules, 2002
2. a first stage dealer or a second stage dealer, as the case may be, in terms of the provisions of Central Excise Rules, 2002
3. Supplementary invoice

(4) The CENVAT credit in respect of input or capital goods purchased from a first stage dealer or second stage dealer shall be allowed only if such first stage dealer or second stage dealer, as the case may be, has maintained records indicating the fact that the input or capital goods was supplied from the stock on which duty was paid by the producer of such input or capital goods and only an amount of such duty on pro rata basis has been indicated in the invoice issued by him

Provided that provisions of this sub rule shall apply mutatis mutandis to an importer who issue an invoice on which CENVAT credit can be taken.

(8) A first stage dealer or a second stage dealer or a registered importer, as the case may be, shall submit within fifteen days from the close of each quarter of a year to the Superintendent of Central Excise, a return in the form specified, by notification, by the Board

Rule 9 was amended to include importer vide notification 9/2014.

New return form for furnishing quarterly return by first stage dealer, second stage dealer and registered importer has been prescribed vide notification 11/2014

Provided that the first stage dealer or second stage dealer or a registered importer, as the case may be, shall submit the return electronically.

Rule 9 was amended to include importer by way of notification 9/2014.

Rule 7A of Central Credit Rule 2004:

(1) A provider of output service shall be allowed to take credit on inputs and capital goods received, on the basis of an invoice or a bill or a challan issued by an office or premises of the said provider of output service, which receives invoices, issued in terms of the provisions of the Central Excise Rules, 2002, towards the purchase of inputs and capital goods.

(2) The provisions of these rules or any other rules made under the Central Excise Act, 1944, as made applicable to a first stage dealer or a second stage dealer OR importer, shall mutatis mutandis apply to such office or premises of the provider of output service