INVOICE SYSTEM
1.1 An invoice is the document under cover of which the excisable goods are to be cleared by the manufacturer. This is also the document which indicates the assessment of the goods to duty. No excisable goods can be cleared except under an invoice. The invoice is the manufacturers own document and though the Department has specified the entries thereon, the format etc. is left to the manufacturer’s choice.
2.1 Rule 11 of the Central Excise (No.2) Rules, 2001 (hereinafter referred to as the said Rules) provides that no excisable goods shall be removed from a factory or a warehouse except under an invoice signed by the owner of the factory or his authorized agent.
2.2 In case of cigarettes, which is under physical control, the Factory Officers are posted by rotation in the factory. If the factory is operation 24 hours, the officers are posted 24 hours. They check the operations of the assessee as per instructions, mutatis mutandis, contained in Commodity Manual for Cigarettes. Accordingly, in the case of cigarettes, each invoice shall also be countersigned by the Inspector of Central Excise or the Superintendent of Central Excise before the cigarettes are removed from the factory.
3.1 The invoice shall be serially numbered and shall contain the registration number, description, classification, time and date of removal, rate of duty, quantity and value, of goods and the duty payable thereon. The serial number shall commence from 1st April every year [beginning of a financial year].
3.2 The serial number can be given at the time of printing or by using franking machine. But when the invoice book is authenticated in the manner specified in sub-rule (5) of rule 11, each leaf should contain serial number. Hand written serial number shall not be accepted.
3.3 In case of computer-generated invoice, the serial number may be allowed to be generated and printed by computer at the time of preparation of invoice ONLY IF the software is such that computer automatically generates the number and same number cannot be generated more than once. For this purpose, the Central Excise Officers may check the system/software from time to time.
4.1 The invoice shall be prepared in triplicate in the following manner, namely:-
(i) the original copy being marked as ORIGINAL FOR BUYER; (ii) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; (iii) the triplicate copy being marked as TRIPLICATE FOR ASSESSEE.
4.2 The above requirement is mainly for Central Excise purposes. However, the assessee may make more than three copies for his other requirements. But such copies shall be prominently marked "NOT FOR CENVAT PURPOSES’.
5.1 The rule 11 of the said Rules provides that only one invoice book shall be in use at a time, unless otherwise allowed by the Deputy/Assistant Commissioner of Central Excise in the special facts and circumstances of each case.
5.2 The Board has decided that where assessee requires two different invoice books for the purposes of removals for home-consumption, and removals for export they may do so by intimating the jurisdictional Deputy/Assistant Commissioner of Central Excise.
5.3 Wherever, an assessee is allowed to keep more than one invoice book, he should be asked to keep different numerical serial numbers for the different sets.
5.4 In case of running stationary used in computers, the bound book shall not be insisted upon provided the stationary is pre-printed with distinctive names and marks of the assessee. After the invoices are prepared, the triplicate copy shall be retained in bound-book form. Where invoices are to be typed written, the leafs have to be first taken out from the book for typing. In such cases also the triplicate copy shall be retained in bound-book form.
6.1 The rule provides that owner or working partner or Managing Director or Company Secretary shall authenticate each foil of the invoice book, before being brought into use. However, in order to facilitate the trade it has been decided that any person duly authorised in this regard by the Company, owner or working partner may also authenticate invoices. Copy of the letter of authority should be submitted to the Range office.
7. Intimation of serial numbers
7.1 Before making use of the invoice book, the serial numbers of the same shall be intimated to the Superintendent of Central Excise having jurisdiction over the factory of the assessee. This can be done in writing by post/e-mail/fax/hand delivery or any other similar means.
8. Rounding off of duty in invoice
8.1 The amount of duty being shown in invoices issued under rule 11 of the said Rules should be rounded off to the nearest rupee as provided for under Section 37D of the Central Excise Act, 1944 and the duty amount so rounded off should be indicated both in words as well as in figures.
9. Provisions of CENVAT Credit Rules, 2001 regarding availment of credit
9.1 Where the part consignments traveling in a convoy or separately do not constitute "complete machinery" falling under a single heading or sub-heading, each such consignment will be classified on merits, say, as ‘parts’ and also a separate invoice showing the separate value arrived at under Section 4 of Central Excise Act, 1944 and the duty amount, must accompany each such consignment.
ANNEXURE - A
Undertaking For Availing Special Procedure
I / We ________________________ hereby undertake that only those components of a ‘complete machinery’ in terms of rule 2(a) of the interpretative rule to CETA which have first been assembled and constitute complete machinery falling under a single heading or sub-heading, and which are later dis-assembled only for the convenience of transport shall be cleared under this procedure on payment of entire duty as per the classification of such machinery / equipment and no ‘parts’ not satisfying this criterion shall be transported with such components unless appropriate Central Excise duty is paid as prescribed for ‘parts’ under the Central Excise Tariff Act, 1985.
Date:
Place: (Authorised Signatory)
10. Preparation of invoices when goods dispatched through more than one vehicle because of their size
10.1 Considering the difficulties faced by the manufacturers in documentation where a consignment of capital goods like heavy machinery, etc. which are first assembled by the manufacturer and are later disassembled only for the convenience of transport is loaded in more than one vehicle and travel separately or at intervals, the following procedure should be followed:-
(i) The manufacturer will intimate, on case to case basis, his option to avail this special procedure in writing for the complete machinery sought to be cleared in a number of individual part consignments after first being assembled to the jurisdictional Deputy/Assistant Commissioner of Central Excise with a copy to the jurisdictional Superintendent of Central Excise along with the description of such machinery/ equipment giving its tariff classification and list of components of such machinery/equipment in dis-assembled form and its value and an undertaking. These intimations shall be given at least 48 hours prior to the removal on any working day. (ii) Though separate verification need not necessarily be made for each and every consignment, before the removal of the first consignment Assistant Commissioner should verify that the various part consignments are indeed constituents of the complete machinery which has been first assembled. (iii) A separate invoice shall be made out for in respect of each conveyance on which the part consignment is loaded. (iv) The manufacturer will pay the entire duty on the first such invoice (hereinafter referred to as "Parent Invoice") on the basis of entire value of the machinery unit/equipment. This parent invoice shall be prepared quoting all vehicle numbers, total value / duty of the consignment. An inventory shall be annexed to the invoice giving detailed item-wise description as loaded in different vehicles. (v) The details of removals and duty payment shall be entered in Daily Stock Account. (vi) Photocopy of the duplicate copy of the parent invoice duly attested by the authorised signatory of the Company shall accompany each conveyance. (vii) CENVAT Credit, if any, shall be taken only on receipt of parent invoice and the entire consignment.
11.1 When an assessee is compelled to cancel invoice, the following actions should be taken:-
(i) Intimation of a cancelled invoice should be sent to the range Superintendent on the same date, whenever possible. However, in case of exceptional circumstances beyond the control of assessee should this not be possible, the intimation should be sent on the next working day; (ii) Along with the intimation of the cancelled invoice sent to the range Superintendent the original copy of the cancelled invoice should also be sent. (iii) Triplicate copy of the cancelled invoice may be retained by the assessee in the invoice book so that the same can be produced whenever required by audit parties, preventive parties and other visiting officers.
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