Invoice-Cancellation-Ex.duty Dr- India Localisation

pashya1972

Hi

In case of invoice cancelled through return order Nav shows the excise duty to the cenvat receivable account. This is true in case where the material is actually returned /rejected from the customer wherein on the basis of customer excise invoice the supplier can take cenvat.
However if a invoice needs to be cancelled once posted, excise authorities are not allowing to take cenvat but they confirmed to reverse the duty payable i.e. revesre from duty payable a/c and not cenvat receivable.

Has anybody face similar issue? and resolution..

Thanx in advance

Prashant

ssingla

Use credit memo. You have urself explained the utility of return order, credit memo is used in case of reversal.

pashya1972

My question was diff. In case of excise invoice cancellation , if we use return order then the posting of excise duty goes to cenvat receivable a/c and not get adjusted to excise duty payable. Since goods r not removed from the factory excise officials insist on not to debit the duty. The only procedure is to submit the proof along with letter of cancellation of invoice.

If we raise credit memo then there is settlement issue. i.e. The invoice shows excise duty payable and credit memo shows as cenvat credit available. and the rg records get updated like that. Excise officials says that u can't take cenvat of cancelled invoice unlike goods returned. It shd be adjusted agst duty payable a/c only.

Prashant

ssingla

I will recommend you post a sales reversal by using copy document function from credit memo and analyse the posting. This will clear your doubts.