Can Excise Invoice be mandetory for the Buyer?

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C.A Alok Mukherjee (Querist)
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27 April 2009 We are a buyer. Sometime we purchase Excisable product from the manufacturers. The manufacurers / sellers sometime issue Excise invoice and sometime issue commercial invoice only without a supporting excise gate pass. Since our finshed product is excise exempted we are not concerned about cenvat credit. Therefore, we do not insist for a excise invoice when the same is not attached. I know as per C.E Rule 11, issuance of excise gatepass is mandetory for the manufacturers. Can it be a binding for the "BUYER" also? Can anybody put a light on this?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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27 April 2009 As per law since you are a buyer you need not worry about it and since you are not claiming input benefit it is immaterial for you.

But the problem you face is when there is any inspection in that factory and they find these bills then they will come to your factory also for inspection and doubt will arise for the excise authorities that you are supporting the manufacuturer when any taxes has been avoiding by applying this route.

Therefore you have to choose the correct procedure by asking for excise bill eventhough you are not claiming input benefit.