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TMI Blogcommercial invoice issue for duty paid goods soldX X X X Extracts X X X X X X X X Extracts X X X X ..... We sold goods to x party on payment of excise duty.later x party reject the material and issued debit note us now goods lying x party premises, can we sale to y party under issue of commercial invoice we will mention detail remarks on commercial invoice duty payment of x party.can we do it ,expert please advice. - Reply By KASTURI SETHI - The Reply = Sh.Anil Jangid Ji, Answer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the negative. Under Rule 11 of Central Excise Rules, 2002 there is no prescribed format of invoice. It is a free format but every valid invoice is required to contain prescribed particulars mentioned in Rule 11 (1). Commercial invoice can be issued only as additional document to Central Excise invoice. Commercial invoice, if issued, T will not be a valid document for availment of cenvat c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit. In terms of Board s Circular No. 1003/10/2015-CX, dated 5-5-2015 (Para No.5(i)), commercial invoice can be issued by a registered dealer in some circumstances but that will also be not a valid document for availment of cenvat cred it. Under Rule 11 (1) a pro forma invoice has been permitted to a manufacturer of yarns or fabrics or ready made garments but that too for a few days and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultimately Central Excise invoice has to be issued in support of Pro forma invoice. You may mention all the particulars on commercial invoice but there is a difference between Central Excise invoice and commercial invoice inasmuch as both have different purposes. Commercial invoice cannot be used Central Excise invoice and vice versa. There are a few case laws wherein the appellate authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es have decided cases in favour of the assessee on the basis of commercial invoice but it is a matter of litigation which should be avoided. - Reply By YAGAY AND SUN - The Reply = Dear Anil, Debit Notes have not been considered documents to avail the CENVAT credit in case of any rejection or returned duty paid goods. Invoices as mentioned in Rule 11 and VAT/CST Laws are crucial as men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioned by 'Sethi Sir. Regards YAGAY and SUN (Management, Business and Indirect Tax Consultants) - Reply By Mahir S - The Reply = If you clear the goods by issuing commercial invoice, then party Y shall not be eligible to avail cenvat credit on such goods. - Reply By KASTURI SETHI - The Reply = Sh.Mahir S, Rightly advised, Sir. I agree with you. Otherwise also comme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcial invoice cannot replace Central Excise invoice. - Reply By Mahir S - The Reply = Yes Sir. Hence, the procedure suggested by the Anil ji, in his query, does not appear to be legal and proper . - Reply By surya narayana - The Reply = Dear Friend, As indicated by our learned friends, it is clear that the other party cannot avail Cenvat credit on your proposed Commercial invoice since i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not a prescribed document for availing cenvat credit under Rule 9(2) of ,2004. Alternatively, you may get back the goods from teh 1st customer and follow the procedure prescribed under Rule 16 of CER,2002 or if it is permissible, let the 1st customer send the material to the proposed customer by raising excise his excise invoice on Ship to party and BIll to party basis ( this is assu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ming that the 1st party already paid the amont ) Regards Surya - Reply By Anil Jangid - The Reply = our is concessional rate of duty 2%, so party can not avail any cenvat credit.so in such case we can sele from x party to y party under issue of commercial invoice. please advice. - Reply By surya narayana - The Reply = If that be the case, the x party can issue a simple delivery chalan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by enclosing the original excise invoice against which you have paid the duty and send to party Y and there after you may issue a commercial invoice for collecting the payment from Y including excise duty and VAT since in his case also y cannot avail credit since you are paying concessional duty under a specific Notification. Regards Suryanarayana - commercial invoice issue for duty paid goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold - Query Started By: - Anil Jangid Dated:- 23-1-2016 Central Excise - Got 8 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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