Excise duty on debit note

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This query is : Resolved

Vipin Kumar Sharma (Querist)

23 March 2013 DEARN SIR

WE ARE PVT LTD CO & REGISTERD IN EXCISE, WE WILL HAVE TO RAISED DEBIT NOTE TO OUR SUPPLIER DUE TO RATE DECREASE. SUPPLIER IS ALSO REGISTRD IN EXCISE. NOW THE MY QUESTION IS THAT SHOULD WE CHARGE EXCISE DUTY ON THAT DEBIT NOTE OR NOT. IF WE DONT CHARGE THE EXCISE DUTY THAT DEPARTMENT RAISED DEMAND. SO PLEASE SUGGEST WHAT WE CAN DO ?

THANKS & REGARDS

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)

24 March 2013 DEAR VIPIN JI,
CENVAT WILL NOT BE ALLOWED ON THAT PORTION OF VALUE, FOR WHICH,YOU WANT TO RAISE DEBIT NOTE. HENCE, CHARGE PROPORTIONATE EXCISE DUTY ON DEBIT NOTE AND DEBIT THIS AMOUNT FROM YOUR CENVAT ACCOUNT, SHOWING DEBIT NOTE NO. & DATE.

ON OTHER HAND, YOUR SUPPLIER WILL CLAIM THE REFUND FROM DEPARTMENT ON THE BASIS OF YOUR DEBIT NOTE AND OTHER SUPPORTING DOCUMENTS. BUT IT IS ALSO FACT THAT TO CLAIM REFUND IS NOT EASY TASK.

THEREFORE, IT IS MY PERSONAL ADVISE TO YOU THAT THE WAY OF DEBIT NOTES AGAINST RATE DIFFERENCE MUST BE AVOIDED, AS MUCH AS POSSIBLE.
THANKS.
R.K. GARG.
(PLEASE CLICK ON "THANKS USER", IF YOU ARE SATISFIED WITH MY REPLY.)

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