Dear All,
We are a manufacturing unit & after make finished goods we have transfer in our registered manufacturer depot for further sale to customer as per Rule 7 & in depot maintain RG23D register and on time of sale duty pass on to customer. Now my query is due to price increase we have issue a supplementary invoice to customer from our depot, in case please tell us excise duty is applicable or not & if yes than how can we charge excise duty from customer on supplementary invoice?
Manufacturers Must Pay Excise Duty on Price Increase, Pass Cost to Customers via Supplementary Invoices Under Rule 9. A manufacturing unit inquires about the applicability of excise duty on supplementary invoices issued due to price increases after transferring goods to a registered depot. The query seeks guidance on charging and passing this duty to customers. Respondents clarify that excise duty is applicable on the differential amount due to price escalation. The process involves paying the differential duty by the factory and then passing it to the depot, which should issue a supplementary invoice to customers, including the original invoice details. The depot acts as a first-stage dealer, and any interest on the duty must be covered by the manufacturer. (AI Summary)
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