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Excise Invoice / Removal of Excisable Goods - Central Excise Practice Manual (OLD) - Central ExciseExtract Chapter No. 16 EXCISE INVOICE/ REMOVAL OF EXCISABLE GOODS INVOICING: Rule 11 of the Central Excise Rules, 2002 provides that excisable goods can be removed from a factory or a warehouse only under an invoice, signed by the owner of the factory or his authorized agent holding letter of authority. In case of Cigarettes, each such invoice shall also be countersigned by the Inspector of Central Excise or the Superintendent of Central Excise. In case goods are directly sent to a job worker, the invoice along with details shall mention the manufacturer or service provider as a buyer and the job worker as a consignee. (Inserted vide Finance Act, 2015) An invoice may be authenticated by way of a digital signature. In case of transporter copy is digitally signed then a hard copy of the duplicate copy of the invoice and also self- attested by the manufacturer is required for transportation of goods. (Inserted vide Finance Act, 2015) Procedure of invoice: 1 . Invoice should contain the following information - Name and address of the consignor [Not mandatory as per rules] Name and address of the consignee [Address of consignee is not mandatory as per rules] PAN based Registration number or ECC code Address of the jurisdictional Central Excise division Description and classification of goods Time and date of removal of goods Rate of duty Quantity and value of goods removed Duty payable on goods Deductions claimed Mode of transport with vehicle registration number In case of proprietary concern or HUF, Name of Proprietor or HUF, as the case may be. Serial Numbered It is the responsibility of the assessee that the information given above is true and correct. 2. Number of copies of invoice and their serial number Invoice should be prepared in triplicate and marked in the following manner: Original copy marked as ORIGINAL FOR BUYER Duplicate copy marked as DUPLICATE FOR TRANSPORTER Triplicate copy marked as TRIPLICATE FOR ASSESSEE The assessee can also prepare more than 3 copies of invoice but they should be marked as 'NOT FOR CENVAT PURPOSES'. Generally one set of invoice book is to be used. However assessee is given general permission to use different sets of books one for clearance for home consumption and the other for clearance for export after giving intimation to AC/ DC. Serial no. of Invoice book used is needed to be intimated to the Superintendent of Jurisdiction Central Excise. Intimation through post, email. Fax or hand delivery is sufficient. If however, assessee desires to keep different sets of invoices for different classes of buyers namely, dealers, Central Government departments, embassies, industrial customers, assessee would be required to take permission also along with written intimation given to the AC/ DC. The same rule is applicable for an importer who issues cenvatable invoices , First stage dealer (FSD) and Second stage dealer (SSD). 3. Notes: The above marks should be pre-printed and they should not be just rubber stamped. Each invoice shall bear a serial number printed by franking machine or typewriter. Computer printed serial numbers are also acceptable where the invoices are generated from the specifically designed software and thus the same serial number cannot be generated more than once (It is advisable that serial number should not be printed by hand). Serial number should start from 1 The invoice should be in book/ bound form. They can be in a loose form if they are computer generated, in such case they must be properly bounded in a file. Invoice has to be raised for all excisable goods whether exempt or not. Invoice has to be raised even for the goods captively consumed. In such a case, only one consolidated invoice at the end of the day is sufficient. Where the provisional duty as assessed by assessee falls short of actual duty assessed, such differential duty is paid by preparing supplementary except when such differential duty was made on account of fraud, suppression of facts or misstatements. Such invoice should have the same series of invoice under which the goods are cleared. Assessee can avail credit of differential duty on the basis of such invoice. The serial number shoud start from 1stApril and will continue for the whole financial year and such serial number should be intimated to the Range Superintendent before bringing them into use.The excise duty, interest, penalty etc. should be rounded off to nearest rupee and part less than 50 paisa shall be ignored. However Sec.37 D of Central Excise does not requires rounding at the time of invoicing. 4 . Removal of goods outside the factory for weighment - In some cases goods have to be removed outside the factory for weighment without the cover of invoice due to their nature. Also invoice cannot be made unless goods are weighed. In such case the following procedure shall be followed - An application shall be made to AC/ DC for the grant of permission. Such permission will be granted for a period of one year, considering the exceptional nature of the goods. Goods shall be removed under a separate set of machine numbered challan pre-authenticated by the Superintendent or Inspector of Central Excise. The assessee should maintain a record of such outward and inward movements indicating date and time. Weighment should be done at the nearest weighbridge to the factory (It is advisable to install weighbridge inside the factory). The Challans number should be quoted on invoice. The challans and weighment slips selected randomly should be verified by the Superintendent or Inspector, once in every month. Permission may be renewed if nothing adverse is found. 5 . Removal of goods without payment of duty for carrying out certain processes [Rule 16C] - A manufacturer of excisable goods can remove such goods from his factory to some other premises and then bring back such goods to his factory or to some other registered or not registered premises without payment of duty, only with the special permission of commissioner and conditions specified thereof. After goods are returned to the factory or such other registered or not registered premises, these can be removed on payment of duty or exported without payment of duty. Note: This rule does not apply to the 'prototypes' that are sent out for trial or development test. 6 . Refusal of goods invoiced by the consignee: In case the consignee refuse to accept goods cleared under the invoice, and if at the same time manufacturer finds another buyer the very same consignment can be diverted to such buyer with the permission of the Range Superintendent who will than endorse the invoice to the new destination to divert the goods to the new destination, or it can be returned to the assessee who can avail Cenvat Credit and then clear the goods once again on payment of duty with new invoice. 7 . Cancellation of invoices: Where the sales order gets cancelled, the assessee is required to take the following actions: 1. Intimation of cancelled invoice should be sent to the Range Superintendent on the same day if possible. However in exceptional cases, intimation can be sent on the next working day. 2. Original copy of cancelled invoice should also be sent along with the intimation to the Range Superintendent. 3. Triplicate copy of the cancelled invoice should be retained by the assessee for production when required by audit party or excise officers. 8. Removal of Excisable Goods: 1. Transhipment of goods - It may happen that the excisable goods sent by one particular vehicle from the factory may be required to be transfer to another vehicle due to breakdown or some other reasons, this is called Transhipment. In such a situation owner of the goods or the transporter should make endorsements at the back of transporter's copy of invoice indicating time and date of shifting of goods and registration number of new vehicle in which the goods were shifted. But if such transhipment of goods from an intermediate point is known to assessee before removal of goods from the factory, the assessee should prepare separate invoice for each lot at the starting point itself and at the intermediate point the owner or his agent or the person in charge of original vehicle shall endorse registration of new vehicle on the invoice. 2. Splitting of consignment Where different packages are dispatched in one lot at one time only one invoice is required in respect of that lot. Where the consignment is split in more than one lot, each of which is dispatched separately either on the same day or on different days, a separate invoice is required to be made out in respect of each such lot. In case of sending of one large machinery in more than one vehicle at the same day or at the different dates, the assessee has to submit undertaking in the form specified for this purpose. The procedure is as follows- Assessee should inform AC/ DC giving details atleast 48 hrs before removal of goods. The parent copy i.e. first invoice should be prepared against which entire duty is paid and giving all details such as registration no. of all vehicles, item-wise description as loaded in different vehicles. On other invoices (i.e. nil duty invoices) details of parent invoice along with attested photocopy of parent invoice should be sent. Thus removal in separate consignments does not mean that 'parts' are removed. Separate verification of each consignment is not required by the department.
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