Short Quartity in Excisable Invoice

[Asked by Guest]

Dear Experts,

we are manufacturing of pumps and it 's dutiable goods.

we have received order from customer for 100 no. of pumps against we have supplied by mistake 95 no. and invoice issued for 100 nos. to party so in which case what can we do ?

or in other case party quoted order of 100 no. against we supplied 105 nos. and excisable invoice raised of 100 nos. then what will be step taken in accounting treatment?

pls. suggest under excise law .

[YAGAY and SUN]

Dear Manan,

Get the certificate of short receipt of material from the Customers, Get the physical verification of finished goods done at your factory premises and inform the Department in this regard. After that you may correct this inadvertent mistake by sending the pumps without payment of duty in supplementary invoice by giving the reference of Certificate, physical verification and of intimation to C.E. Department.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

thank you so much for your reply.

we can raise supplementary invoice to party against short quantity invoice. if we have supplied 100 nos. of pumps as per party order and invoice had been raised with 105 in that case same procedure would be follow?

regards,

Manan pandya

[YAGAY and SUN]

Yes, but on supplementary invoices so issued you would have to pay the interest.

AI Summary

Excisable invoice corrections: obtain customer certificate, inform authorities and issue supplementary invoice; interest applies on adjustments.
Obtain a customer certificate of short receipt, conduct physical verification of finished goods, and inform the Central Excise Department. Correct quantity errors by issuing a supplementary invoice referencing the certificate, the physical verification and the departmental intimation; dispatching the short-supplied goods can be done without fresh duty payment if properly documented. For supplementary invoices adjusting excess supply, comply with the same documentary and reporting steps and pay interest on the duty adjustments arising from such invoices.