Inventory mismatch of RM PM

[Pradip Sirsat]

Dear Team,

the above subject mention, we have reconcile and found short inventory of RM PM.

in this case can we reverse excise duty. kindly request give your opinion with reference.

Regards,

Pradip

AI Summary

Debate on Reversing Excise Duties Due to Inventory Shortages: Voluntary Reversal vs. Accounting Errors. A discussion on inventory discrepancies of raw materials (RM) and packing materials (PM) raised concerns about reversing excise duties. Contributors debated whether shortages necessitate reversing CENVAT credit, with some suggesting voluntary reversal to avoid penalties. Others argued that shortages might not always indicate finished goods were cleared without duty, citing a tribunal ruling that accounting errors could explain discrepancies. The discussion emphasized the importance of considering various factors before concluding shortages, while some advised paying duties on shortages to prevent further investigations. There was also mention of reversing VAT input credit alongside CENVAT.