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Excise reversal for shortage receipt by customer from tpt.

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amitkrmakharia@yahoo.co.in

director

21 Points Posted on 02 April 2012

Dear Sir,

We are sending material to some location in south to OEM. Its generally picked up by customer convenience from transporter. During the year customer has received short material for value 200,000 including excise and cst. Now customer is not giving any invoice to reverse the duty, they are only issuing ODC (open delivery certificate) mentioning short receipt. Is this correct to reverse the excise or any procedure to deal this situation? Waiting anxiously for your reply at amitkrmakharia @ yahoo.co.in

Replies (1)

Sunil Kumar G

AGM Taxation

446 Points Posted on 05 April 2012

Central Excise duty liability arise at the time of manufacuture and its not on sales. Once you manufactured the product, you are suppose to pay the excise duty eventhough it is lost in transit or theft. You can't raise any debit note/ credit note for differential duty. But in the case of CST, the CST on goods lost/ theft can reverse becuase CST arises at the time of sale.

Sunil Kumar