Excess Excise Duty Pass on by Dealer

[Tarun Tyagi]

Dear Concern,

We are a first stage dealer for excisable goods and we have passed on excess excise duty to our customer what we have received originally from manufacturer.

  Please suggest us corrective action/obligation of excise department.

Rgds,

Tarun

[PAWAN KUMAR]

Just intimate your jurisdictional range superintendent along with the details that you have by oversight passed on excess excise duty which received from the manufacturer.

Also mention this that you are re-crediting the excise duty excess passed on to your customer and issuing the credit note to your customer.

After that you will issue an invoice to original manufacturer debiting re-credit amount of excess duty. Now your RG23 D register will show nil impact.

On the basis of invoice issued by you the original manufacturer will take cenvat of excise duty paid in excess.

 

[Guest]

Dear Pawan Kumar,

I have gone through Central excise Act, 1944 and its rules, no where i found the procedure you were suggesting, can you please give the reference of what you are suggesting (whether case laws or any other reference), i am also facing with the similar problem, please consider this as an urgent issue and guide me.

[PAWAN KUMAR]

Dear Sir,

The same is not mentioned in the act. This is the logical issue which can be done with the help of excise department. The thing which happened can be corrected intimating both the manufacturer/customer and it can be done at your end.

AI Summary

Excess excise duty correction: dealer must re-credit customer, notify superintendent and adjust manufacturer's cenvat through invoicing. A dealer who passed excess excise duty should re-credit the customer by issuing a credit note, notify the jurisdictional range superintendent, and issue an invoice to the manufacturer debiting the re-credit amount so the manufacturer may take CENVAT, thereby leaving the dealer's RG23D register with nil impact.