CONSOLIDATED EXCISE INVOICE FOR DISPATCH THROUGH RAILWAY WAGONS

[Mehul Pandya]

SIR,

WE WOULD LIKE TO DISPATCH THROUGH RAILWAY WAGONS. CAN IT POSSIBLE THAT WE REMOVE 50-60 TRUCKS ON CHALLAN AND THEN AT THE END OF DAY WE PREPARE CONSOLIDATED EXCISE INVOICE FOR THE SAME. IS IT POSSIBLE EXCISE RULES ?. IF YES , CAN YOU GUIDE THE BRIEF PROCEDURE FOR THE SAME.

[PAWAN KUMAR]

Dear Sir,

There is no provisions as such regarding the same. as per my view, excise invoice is to be prepared as per actual truck(vehicle) being removed from the factory of manufacture/production.

[YAGAY andSUN]

Dear Mehul,

There is no way out except to follow the Rule 11 of the CERs 2002. However, You may get relief if the goods which you intent to remove is heavy machine and needs to be sent in fragmented form in 50-60 trucks on the basis of one Invoice. Please check C.E. Manual in this matter for better understanding.

Further, you would have also adhere with compliance of the concerned State's VAT and or CST Act and or Entry Law Laws read with rules made thereunder

 

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultant)

[Rajagopalan Ranganathan]

Sir,

The procedure for your purpose is detailed at Para 10 of Chapter 4 of CBEC;s manual of Supplementary Instructions which is as follows: -

10. Preparation of invoices when goods are des patched because of their size

thorugh more than one vehicle

Considering the difficulties faced by the manufacturers in documentation where a consignment of capital goods like heavy machinery, etc. which are first assembled by the manufacturer and are later disassembled only

for the convenience of transport is loaded in more than one vehicle and carried separately or at intervals, the following procedure should be followed :-

(i) The manufacturer will intimate, on case to case basis, his option to avail this special procedure in writing for the complete machinery sought to be cleared in a number of individual part consignments after first being assembled, to the jurisdictional Deputy/Assistant Commissioner of Central Excise with a copy to the jurisdictional Superintendent of Central Excise along with the description of such machinery/equipment giving its tariff classification and list of components of such machinery/equipment in dis-assembled form and its value and an undertaking in the following format :-

I / We _____________________ hereby undertake that only those components of a 'complete machinery' in terms of rule 2(a) of the interpretative rules to CETA which have first been assembled and constitute complete machinery falling under a single heading or sub heading, and which are later dis-assembled only for the convenience of transport shall be cleared under this procedure on payment of entire duty as per the classification of such machinery / equipment and no 'parts' not satisfying this criterion shall be transported with such components unless appropriate Central Excise duty as prescribed for 'parts' under the Central Excise Tariff Act, 1985 is paid.

Date:

Place:

(Authorised Signatory)

These intimations shall be given at least 48 hours prior to the removal on any working day.

(ii) Though separate verification need not necessarily be made for each and every consignment, before the removal of the first consignment, the Deputy/Assistant Commissioner should verify that the various part consignments are indeed constituents of the complete machinery which has been first assembled.

(iii) A separate invoice shall be made out in respect of each conveyance on which the part consignment is loaded.

(iv) The manufacturer will pay the entire duty on the first such invoice (hereinafter referred to as "Parent invoice") on the basis of entire value of the machinery unit/equipment. This parent invoice shall be prepared quoting all vehicle numbers, total value/duty of the consignment. An inventory shall be annexed to the invoice giving detailed item-wise description as loaded in different vehicles.

(v) The details of removals and duty payment shall be entered in Daily StockAccount.

(vi) Photocopy of the duplicate copy of the parent invoice duly attested by the authorised signatory of the Company shall accompany each conveyance.

(vii) CENVAT credit, if any, shall be taken only on receipt of parent invoice and the entire consignment.

(viii) Where the part consignments travelling in a convoy or separately do

not constitute" complete machinery" falling under a single heading or sub-heading, each such consignment will be classified on merits, say, as 'parts' and also a separate invoice showing the separate value arrived at under Section 4 of Central Excise Act, 1944 and the duty amount, must accompany each such consignment.

AI Summary

Consolidated excise invoicing permitted for disassembled machinery with parent invoice, duty paid, and separate conveyance invoices. Consolidated invoicing is allowed when complete machinery assembled and later disassembled for transport is cleared in multiple consignments: the manufacturer must notify the jurisdictional officers in writing before removal, prepare a parent invoice paying entire duty and annexing an inventory with vehicle numbers, issue separate invoices for each conveyance accompanied by an attested photocopy of the parent invoice, record removals in the Daily Stock Account, and take CENVAT credit only on receipt of the parent invoice and entire consignment; consignments not constituting a single machinery must be invoiced as parts.