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

Free supply: No VAT or C Form for goods supplied without consideration; reverse input tax and CENVAT credits.
When excess goods are supplied without additional consideration, treat the excess as a free supply: it does not attract VAT and Form C is not required for that portion. However, proportionate reversal of input tax credit and CENVAT credit is necessary. Alternatives include writing off the unpaid supply at year end or collecting Form C only for the invoiced/considered quantity, with corresponding credit reversals recorded.