Upgrad LLM

cenvat credit on goods procured

Engineer (Procurement)

  I'm working in the procurement section of a Power Transfomer manufacturing firm situatd in Kerala. We source most of the raw materials from north indian suppliers/manufactirers. Most of our customers are also in Northern side of India. Transformer oil is one of the rawmaterial and which we just fill in the tank of the transfoemr before dispatch. This can be done from the site/customer's end also. If we could dispatch the same from our supplier to customer's site huge amount of freight can be saved. Is there any provision to avail CENVAT credit for direct dispatch of oil from our supplier to customer as we are un necessarily wasting our money (freight) and time ( travel time).

Sr. Manager

You can ask your transformer oil suppliers to generate the excise invoice  with you as buyer and your client as consignee and despatch the transformer oil directly to your client (as sale in transit).  With this your client can avail cenvat.  You can subsequently raise commercial bill to your client.

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