24 February 2012
A company X having works at Karnataka sold a equipment to Mr.A and paid the excise in name of Mr.A in march 2010. Later Mr.A didn't lift the equipment from karnataka till march 2010. Company X than transfered the equipment to its depot in maharashtra. In August 2010 Company X received order from Mr.B for similar model. Now Company X advised its Maharashtra depot to divert the said equipment to Mr.B at a price 10% higher. Mr.B received equipment invoice and other documents but excise gate pass was not given. Mr.B has taken CENVAT credit of the equipment on equipment invoice. Now in 2012 during excise audit of Mr.B auditor asked for excise gatepass. Mr.B is unable to produce the excise gatepass and approach company X. Now queries is 1) Can Company X reverse the name in excise gatepass from Mr.A to Mr.B and pay the difference of excise duty. 2) Will it be useful for Mr.B 3) What will be the best solution of above mentioned problem in your views.
25 February 2012
Dear Sir. (1)After a lapse of about 1 year it is no possible for X to revise/reverse excise Invoice from A to B and pay central excise duty.(2) Since it is not possible for A to revise/revesre in favour of B, there is no question of it's usefulness to B (3)The best solution is to forget CENVAT credit by B for the reason that the original Invoice is in the name of A and therefore through their depot has taken delivery, their Depot is also unable to issue Invoice at price it which the goods was transferrred to Dept. (
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