Excise invoicing for short supply

[Santosh Karangutkar]

We have manufacturer and made supply invoice month back and now we understand that one item short supplied against same excise invoice. And now we require to despatch the same . Please guide how to despatch this short supply item

[KASTURI SETHI]

No Range Officer will take risk and allow you to clear one piece without payment of duty by giving the reference of original invoice on the supplementary invoice irrespective of the amount involved, especially, routine visits by the Range Staff are banned. This is record based mistake.

[Ganeshan Kalyani]

Sir, risk involved in removing the goods in such situation. Taking risk or not is a commercial call. Thanks.

[vuchcholla Bhaskar]

Dear Sir,

Consignee can be raised the debit note copy for the short qty after that you can take the credit based on debit note copy and you can raise the fresh invoice with excise duty.

Thanks for the understandings.

Thanks & Regards

Bhaskar

[Ganeshan Kalyani]

Yes this seems to be quit good solution but need to keep the accouting proper to explain the auditor during audit. Thanks.

AI Summary

Excise duty compliance: short-supply items must be invoiced and duty paid, use debit note and fresh invoice to regularise.
Short-supply of goods against an already issued excise invoice should be regularised by the consignee issuing a debit note for the short quantity, enabling the manufacturer to take corresponding credit and raise a fresh excise invoice for the outstanding goods with appropriate duty accounting, rather than attempting removal without duty based on a supplementary invoice.