Admissibility of modvat credit where computer generated invoices do not contain pre-printed serial numbers - Central Excise - 482/48/99

CIRCULAR No: 482/48/99-CX Dated 25th August, 1999 Central Excise-Admissibility of modvat credit Where computer generated invoices do no contain Pre-printed serial numbers- Instructions It has been brought to the notice of the Board that few commissionerates have issued trade notices making pre-printing of serial numbers on the invoices generated on computers mandatory, whereas in rest of the commissionerates such pre-printing of serial numbers is not mandatory. This has resulted into diverse practice. further, the commissionerates where pre-printing of serial numbers on computer generated invoices is mandatory as issuing show-cause notices for denial of modvat credit in respect of the goods received from the commissionerates where such pre-printing is not mandatory, on the ground that invoice do not contain per-printed serial numbers. 2. The Board has examined the matter. The percent rule 52A and rule 57GG of Central Excise Rules, 1944 provide that each invoice shall bear a printed serial number running for the whole financial year beginning on the 1st April of each year. Based on this, Circular No. 34/34/94-CX dated 26.4.94 was issued, wherein it was clarified that in case of invoices generated on computers, the running serial number can be printed at the time of printing of such invoices. In an another Circular No. 180/14/96-Cz dated 7.3.96, it was clarified that printing of running serial numbers on invoices with the help of automatic number machine (franking machine) is permitted provided the serial numbers are given on each invoice book before the same is brought into use and that hand written or rubber stamped serial numbers are not permitted. The latter instructions re-emphasized that it may not be necessary to pre-print serial number on computer generated invoices. However, few commissionerates noticed misuse of this provision and recommended its revision. The matter is already under detailed examination and the decision will be communicated in due course. In any case, printing of running serial numbers on computer generated invoices do not amount to any breach of rules. Denial of modvat credit, merely on the aforesaid ground is not warranted, especially when this procedural lapse has happened consequent to diversity in procedures among the different commissionerates. 3. Accordingly, the Board has decided that modvat credit should not be denied on the ground that the computerised stationery did not contain "pre-printed serial numbers" but only contained serial numbers printed by the computer at the time of printing of invoices. Henceforth, show-cause notices for denial of modvat credit should not be issued on this ground, and the show-cause notices already issued should be disposed of on the basis of the aforesaid instructions. 4. The trade and field formations may suitably be informed. 5. Receipt of this Circular may please be acknowledged. 6. Hindi version will follow. Issued by: Ministry of Finance Department of Revenue Central Board of Excise Customs New Delhi. F.NO.212/03/94-CX.6(Pt.)