Suppose in Last case, Manufacturer 1 sells to Dealer who is registered in Excise(called First Stage Dealer) who sells to Manufacturer 2
Manufacturer 1---->FSD---->Manufacturer 2
Assuming FSD does not earn any Profit and works at No Profit no loss
In this case,Excise will be charged as follows
What is Excise Duty Payable in this case by all 3?
View Answer
Q2
What will Manufacturer 2 Prefer now
Purchase from Manufacturer 1
or
Purchase from First Stage Dealer?
View AnswerIt does nor matter now to Manufacturer 2
In both cases,he has to pay same Excise duty of 14000
Q3
Why do Dealers get themselves registered in Excise?
View AnswerDealers get themselves registered in Excise as First Stage Dealer
so that they can charge excise duty on their bills and Purchasers can get input (Cenvat) of the same
