cancelled invoices not submitted in time

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This query is : Resolved

sachin (Querist)

19 November 2009 What are the penalties and fines for procedural lapse in case cancelled invoices are not submitted within 24 hours? how can we avoid the penalties?

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)

20 November 2009 Cancellation of the invoices:
When an assessee desires to cancel the invoice, the following procedures
are to be followed:
1.Intimation relating to cancellation of the invoice should be sent to the
jurisdictional Range Superintendent on the same date. If the intimation could not be filed on the same day due to exceptional circumstances beyond the control of the assessee, the same can be sent on the nextworking day;
2. The original and duplicate copy of the cancelled invoice should also be sent along with the intimation.
3. Triplicate copy of the cancelled invoice may be retained by the assessee in the invoice book so that the same can be produced when required by the Audit group, Preventive group or other visiting officers.
Rule 27 of the Central Excise Rules, 2002:
A general penalty is liable to be imposed which may extend to Rs. 5000/- for contravention of the Rules and Confiscation of the goods in respect of which the offence is committed. This penalty is attracted when no specific penalty is provided for under the Act or in the Rules.

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