Excise goods time of removal

[venkat eswaran]

Dear All,

While raising excise invoice for remvoval of excisable goods, within how much time this goods to be removed from the factory?

Expecting Your valuable reply

Thanks in advacne

Venkat

[Rajagopalan Ranganathan]

Sir,

If you raised an invoice dated 19.4.2016, the goods should be removed on or before 24 hrs. of the date of invoice. If you remove the goods thereafter, then your invoice date has to be changed which is not permissible under various statutes. This is my understanding.

[MADAN RAHEJA]

Dear Sir,

While agreeing with views expressed by Sh. Ranganathan Sir, I would like to add that time of removal

on invoice should be mentioned only when goods are being actually removed.

[KASTURI SETHI]

Sh.Venkat Eswaran Ji,

I think in the era of advancement in information technology /computerisation 'the period of 24 hrs' has lost its relevance. I shall feel obliged if Sh.Ranganathan Sir can mention any rule/circular/notification in this context and which is in force at present.

[Suryanarayana Sathineni]

Dear Friend,

While concurring with the views expressed by the learned friends, I wish to state

Generally, the invoice contains in addition to other columns

• Date of Invoice and Time of Invoice
• Date of Removal and Time of Removal

As per the general practice prevailing in the industry the assessees ensure clearing the goods within 24 hours of the date and time of invoice. According to me, there is no such express provision mandating such clearance with 24 hours is not there under the Act or Rules.

When there are separate dates for preparation of invoice and removal of goods, the age old mandate of 24 hours is not really having any relevance in the present era.

Hence, I feel, in case of any specific reason even if an assessee is unable to clear the goods within 24 hours of the date and time of preparation , he can clear the goods subsequently by putting the date and time of actual removal of the goods from the factory.

However, in order to comply with other requirements like monthly payment, inclusion of details of Return etc, it is advisable that the invoice raised on a particular date and goods removed subsequently, the removal should be completed within that month itself.

Best regards

Suryanarayana

[KASTURI SETHI]

Sh.Surya Narayana Ji,

Sir, Thanks for your detailed reply. You have echoed my views. I was thinking on same lines.

[Ganeshan Kalyani]

Sir I should thank to querist and all the experts to have shared there views. The discussion was too interesting especially when experts cross questions among themselves. Sometimes the experts raises questions which the querist would like to ask but may hesitate. Such a healthy discussion thanks.

AI Summary

Time of removal: invoices should record actual removal date and cannot be retroactively altered; no statutory short term clearance requirement.
Time of removal requires recording the actual removal date/time on the excise invoice when goods are physically removed; there is no express statutory mandate fixing a very short mandatory clearance interval, invoices must not be altered to retroactively change dates, and it is prudent for removal to occur within the same tax month to ensure accurate return reporting and payment compliance.