C form for Demaged goods -reg

[venkat eswaran]

Dear All,

We are mfg unit in chennai sending goods[ paints] to Delhi on CST sales basis. Some times it has leaked and damaged in transporters. Customer is not giving C form for the leakaged goods since they have not received the goods. For damage value we are deducting pmt from Transporter. But what about C form what to do in this situation?

And also some time customer checking the paints as trial purpose and consumed some qty of goods in case it is not suitable they are returning the goods whole lot. But physically not the full qty since they consumed some qty in trial process. What we should at this time. How can we reverse the Excise and how we treat in C form?

kindly give ur valuable views

Thanks in advance

Venkat

[Ganeshan Kalyani]

Sir, before the vehicle leaves your factory premises the invoice copy should also be carried by the transporter. At that time if the invoice value is say ₹ 120000/-. And by the time the material reaches your Delhi customer, some quantity of material in the truck is lost. So the invoice booked by the customer in his books on accepting the material would be of lesser value say ₹ 180000/-. Since he has accounted the transaction for a lesser amount, he is in a position to issue Form C of a lesser amount. In such case the payment received by you will be less. Hence the customer account maintained in your books won't tie up with the invoice value. Hence you will have to pass a journal entry for loss of material in the transit. By passing the said entry your account with that of your customers account get tie up. In this scenario the Form C issued by your customers, the value in it would definitely tie up with your books.

Now coming to return filing part. A common concern is that say your sale took place in April ending and you have filed your return for April and after doing so you were informed by your customer that the quantity received is less and that he will issue forms accordingly. This creates issue for you. In such cases you have to revise your return with the revised amount after netting with the loss in transit value. This will solve your issues as described in your query. In few States Annual Return provision is there which helps the assesse to shown final amount in his return. Thanks.

[KASTURI SETHI]

Excellent reply by Sh.Ganeshan Kalyani, Sir. Regarding Central Excise, the provision for revised return is available under Rule 8 (a) (b) of Central Excise Rules, 2002 (inserted vide Notification No.8/16-CE(NT) dated 1.3.16 effective from 1.4.16). Both returns monthly and yearly can be revised.

[Ganeshan Kalyani]

Thanks Sir for your complement. It is a remuneration to me. Thanks.

AI Summary

Manufacturing unit seeks advice on handling C forms and excise reversal for damaged goods in transit. Revised returns allowed. A manufacturing unit in Chennai is facing issues with damaged goods during transportation to Delhi, affecting the issuance of C forms by customers who do not receive the full shipment. The company deducts payments from the transporter for damages but seeks advice on handling C forms and excise reversal when customers return goods after trial usage. A respondent suggests carrying invoice copies with shipments and adjusting accounts through journal entries for transit losses. They also recommend revising returns to reflect actual received quantities. Another respondent confirms that revised returns are permissible under Central Excise Rules.