Treatment of cenvat credit on short receipt of goods

Respected all In case of first stage dealer while purchase of goods, goods are short received in the factory premises, though invoice was raised with full amount, now whether - 1. Debit note should by receiver be raised along with the amt of excise duty or only with basic value? 2. Whether the cenvat credit should be booked for with total credit first, & then the credit of goods short received should be reversed back. or directly a entry with total credit less credit of goods short received should be made?

Kindly provide me with your valuable answer

Thanking you

Replies (1)

Cenvat Credit on inputs could be availed only on receipt of inputs in the factory of the manufacturer. Hence, in case of short receipt, credit could be availed proportionately only to the extent of goods received and balance could be availed when the suppliers supplies the shortage material. Debit notes could be raised with duty.

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