C Form for material is supplied excess

[saket s]

Whether C Form can be issued even material is supplied excess than PO/ Contract?

We had sold excess material to customer / client to complete order. Supplied quantity was more than PO quantity. Now the customer is refusing to issue Form C arguing that we had supplied excess material.

Pls let me know if there any case law on this issue.

Thanks

Saket

AI Summary

Inquiry on Issuing C Form for Excess Supply: Free Supply Suggestion to Avoid VAT and Form C Requirement. A party inquired whether a C Form can be issued when material supplied exceeds the purchase order quantity. The customer refused to issue the C Form, arguing the excess supply was not part of the original contract. Responses suggested treating the excess as a free supply, which would not require VAT or Form C, as VAT is applicable only when goods are sold for consideration. If treated as free, Input Tax Credit and CENVAT credit should be reversed proportionately. It was advised that free supplies do not necessitate a C Form since they are not reflected in the sales register.