Cenvat Credit Input on Rawmaterial

2306 views 8 replies

Anand Sharma

Service

52 Points Joined December 2008

XYZ Pvt Ltd., Company raised purcased order on ZYX Pvt Ltd., for purchase of 100 Units of articles @ Rs.100. In Purchaed order The ECC number of XYZ Pvt Ltd., wrongly written and the same ECC number mentioned by the seller and sent the goods , based on the invoice received from ZYX Pvt Ltd., the accountant of XYZ Pvt Ltd., taken Cenvat Credit in RG 23 A Part II.

Please give the answer of the following question with (case law if any,) or as per the excise rules which was arise on the above case :

Is it the action taken by accountant is correct i.,e with wrong ECC excise invoice the input credit taken by the accountant.\?

What is the legal complication as per the excise Cenvat Credit Rule?

How the above error can be rectified.?

Replies (8)

Rajesh

Artical

59 Points Joined January 2009

Sir, as far as i have seen in practical life is If the ECC no. in order is placed incorrect then the only way is the correction of invoice or reissuence of invoice by the seller.

Himanshu

Chief Accountant

96 Points Joined February 2010

Dear Anand,

i will agree with opinion of rajesh.

Himanshu.

Murthy B.C

Excise Officer

141 Points Joined June 2010

Cenvat Credit availed is correct but you can proof of raw matirial received in your factory and same issued to production . this details enclosed to Cenvat Credit Invoice thats enough for clarified of your rawmaterial

Murthi

Abhinav Jain

Manager

93 Points Joined September 2008

By way of letter you can bring it in notice to the other party, take a receipt.

Make a correction and new sign there in your copies of bill and mention

the same in your letter.

Ajay Raghatate

Sr Executive (Excise & Accounts)

736 Points Joined February 2009

Excise Officer can disallow your Cenvat credit on this Invoice, due to wrong ECC No.

You have to rectify your ECC No. mentioned on Invoice, from supplier & sign is must on correction with seal.

vivek

74 Points Joined July 2010

Excise Officer may disallow your Cenvat credit due to wrong ECC No.

You have to rectify your ECC No. mentioned on Invoice, from supplier & sign is must on correction with seal.

Murthy B.C

Excise Officer

141 Points Joined June 2010

If ECC no is Wrong then u can proof of ur Purchase Order and Materila Recipt (GRN) material issued to production this are all enough for this is ur Material Proof, then u r eligable for Cenvat Credit. ot that Invoice.

Prabhat Kumar

Advocate & Consultant

1912 Points Joined July 2009

It is a technical error can be rectified.So long the goods have been received in the factory and duly accounted, there should not be any problem.Get it rectified at the seller's end.