DUTY PAID ON CANCELLED INVOICE

[Asked by Guest]

Dear Sir/Madam,

 

We are manufacturer of small commercial vehicle after completion of manufacturing process we have parked our vehicles in supply float area due during internal movement 10 vehicles got damaged, after that we have billed to Insurance company for claiming the insurance,

 

• Insurance company not interested to take our vehicles as those vehicles not covered by insurance policy. Hence vehicle are lying at our premises and we cannot bill it other customers due to damage.
• We have reversed the transaction next month in our system through cancelling the invoice
• While submitting (ER1) return we have debited excise duty in our register and we have reduced no of vehicle in our RG1 register
• There is no physical movement of vehicles
• After cancelling the invoice we have not communicated to excise department

 

Query.

1)      How to get these vehicles in to our RG1 register for increasing the inventory

2)      Can we avail cenvat credit based on our cancelled invoice

3)      Till today we have not given intimation to excise deprtment and those duty paid vehicles are lying at scrap yard

4)      What would be the excise dept view on this

 

Request you to kindly suggest on this

 

Thanks and Regards

RAMAPPA SOMAKKALAVAR

AI Summary

Excise duty on cancelled invoices: reversal, refund or cenvat credit require departmental intimation and remedial orders.
Where excise duty was paid on goods subsequently billed and the invoice cancelled, the manufacturer must reverse sales and duty entries, reinstate RG 1 inventory, and notify the revenue. Availability of cenvat credit or refund requires approaching the department and securing either departmental credit or refund through prescribed remedial procedures; delayed intimation can be regularised by presenting facts and seeking ratification from the Commissioner.