Procedure to dispose off Excise Invoice after 5 years

[Guest]

Dear Sir,

Please provide us the procedure to dispose off the Excise records after 5 years.

[Rajagopalan Ranganathan]

Sir,

Sub-rule (3) of Rule 10 of Central Excise Rules, 2002 stipulates that " all such records shall be preserved for a period of five years immediately after the financial year to which such records pertain". The term "all such records" means stock account, invoices, copies if periodical returns filed etc.

[YAGAY andSUN]

However, if any litigation is pending then such record needs to be preserved till such matter attains finality. It is a settled legal position.

[Ganeshan Kalyani]

In my understanding the law provides provided for maintenance of records , but it does not mention about the method of destroying the records after keeping it for prescribed time period. Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

The Act provides statutory time limit as told by Shri Ranaganathan Sir. Disposal of records is at your own convenience.

[Ganeshan Kalyani]

What are the ways the corporate offices destroy the records that are old.

Paper shredder is a machine which cuts the paper into small pieces.

Burning out the papers.

Etc.

[YAGAY andSUN]

Provision of Company Law read with other allied laws which are for the time being in force must be complied with in such matters.

AI Summary

Record retention requires preservation for the prescribed period; destruction is deferred while litigation remains pending. Sub rule (3) of Rule 10 of the Central Excise Rules, 2002 requires preservation of all such records - stock accounts, invoices, and copies of periodical returns - for the five year period following the financial year to which they pertain. Records subject to pending litigation must be retained until finality. The law does not prescribe a method of destruction after the retention period; disposal is at the record holder's convenience, subject to compliance with company law and other applicable obligations.