Invoice System, Introduction, Removals only on Invoice, Serially Numbered Invoice, Number of Invoice copies Number of Invoice book.
Removals only on invoice
Serially numbered invoice
Number of Invoice copies
Number of Invoice book
Authentication of Invoices
Intimation of serial numbers
Rounding off of duty in invoice
Provisions of CENVAT Credit Rules, 2001 regarding availment of credit
ANNEXURE - A
Preparation of invoices when goods dispatched through more than one vehicle
because of their size
Cancellation of invoices
1.1 An invoice is the document under cover of which the excisable
goods are to be cleared by the manufacturer. This is also the document which
indicates the assessment of the goods to duty. No excisable goods can be
cleared except under an invoice. The invoice is the manufacturers own
document and though the Department has specified the entries thereon, the
format etc. is left to the manufacturer’s choice.
- Removals only on invoice
2.1 Rule 11 of the Central Excise (No.2) Rules, 2001 (hereinafter
referred to as the said Rules) provides that no excisable goods shall be
removed from a factory or a warehouse except under an invoice signed by the
owner of the factory or his authorized agent.
2.2 In case of cigarettes, which is under physical control, the Factory
Officers are posted by rotation in the factory. If the factory is operation
24 hours, the officers are posted 24 hours. They check the operations of the
assessee as per instructions, mutatis mutandis, contained in Commodity
Manual for Cigarettes. Accordingly, in the case of cigarettes, each invoice
shall also be countersigned by the Inspector of Central Excise or the
Superintendent of Central Excise before the cigarettes are removed from the
- Serially numbered invoice
3.1 The invoice shall be serially numbered and shall contain the
registration number, description, classification, time and date of removal,
rate of duty, quantity and value, of goods and the duty payable thereon. The
serial number shall commence from 1st April every year [beginning of a
3.2 The serial number can be given at the time of printing or by using
franking machine. But when the invoice book is authenticated in the manner
specified in sub-rule (5) of rule 11, each leaf should contain serial
number. Hand written serial number shall not be accepted.
3.3 In case of computer-generated invoice, the serial number may be allowed
to be generated and printed by computer at the time of preparation of
invoice ONLY IF the software is such that computer automatically generates
the number and same number cannot be generated more than once. For this
purpose, the Central Excise Officers may check the system/software from time
- Number of Invoice copies
4.1 The invoice shall be prepared in triplicate in the following
4.2 The above requirement is mainly for Central Excise purposes.
However, the assessee may make more than three copies for his other
requirements. But such copies shall be prominently marked "NOT FOR
- the original copy being marked as ORIGINAL FOR BUYER;
- the duplicate copy being marked as DUPLICATE FOR TRANSPORTER;
- the triplicate copy being marked as TRIPLICATE FOR ASSESSEE.
- Number of Invoice book
5.1 The rule 11 of the said Rules provides that only one invoice book
shall be in use at a time, unless otherwise allowed by the
Deputy/Assistant Commissioner of Central Excise in the special facts and
circumstances of each case.
5.2 The Board has decided that where assessee requires two different
invoice books for the purposes of removals for home-consumption, and
removals for export they may do so by intimating the jurisdictional
Deputy/Assistant Commissioner of Central Excise.
5.3 Wherever, an assessee is allowed to keep more than one invoice book,
he should be asked to keep different numerical serial numbers for the
5.4 In case of running stationary used in computers, the bound book
shall not be insisted upon provided the stationary is pre-printed with
distinctive names and marks of the assessee. After the invoices are
prepared, the triplicate copy shall be retained in bound-book form.
Where invoices are to be typed written, the leafs have to be first taken
out from the book for typing. In such cases also the triplicate copy
shall be retained in bound-book form.
- Authentication of Invoices
6.1 The rule provides that owner or working partner or Managing Director
or Company Secretary shall authenticate each foil of the invoice book,
before being brought into use. However, in order to facilitate the trade
it has been decided that any person duly authorised in this regard by
the Company, owner or working partner may also authenticate invoices.
Copy of the letter of authority should be submitted to the Range office.
- Intimation of serial
7.1 Before making use of the invoice book, the serial numbers of the
same shall be intimated to the Superintendent of Central Excise having
jurisdiction over the factory of the assessee. This can be done in
writing by post/e-mail/fax/hand delivery or any other similar means.
- Rounding off of duty
8.1 The amount of duty being shown in invoices issued under rule 11 of
the said Rules should be rounded off to the nearest rupee as provided
for under Section 37D of the Central Excise Act, 1944 and the duty
amount so rounded off should be indicated both in words as well as in
Provisions of CENVAT Credit Rules, 2001 regarding availment of credit
9.1 Where the part consignments traveling in a convoy or separately do
not constitute "complete machinery" falling under a single heading or
sub-heading, each such consignment will be classified on merits, say, as
‘parts’ and also a separate invoice showing the separate value arrived
at under Section 4 of Central Excise Act, 1944 and the duty amount, must
accompany each such consignment.
ANNEXURE - A
Undertaking For Availing Special Procedure
I / We ________________________ hereby undertake that only those
components of a ‘complete machinery’ in terms of rule 2(a) of the
interpretative rule to CETA which have first been assembled and
constitute complete machinery falling under a single heading or
sub-heading, and which are later dis-assembled only for the convenience
of transport shall be cleared under this procedure on payment of entire
duty as per the classification of such machinery / equipment and no
‘parts’ not satisfying this criterion shall be transported with such
components unless appropriate Central Excise duty is paid as prescribed
for ‘parts’ under the Central Excise Tariff Act, 1985.
Place: (Authorised Signatory)
Preparation of invoices when goods dispatched through more than one
vehicle because of their size
10.1 Considering the difficulties faced by the manufacturers in
documentation where a consignment of capital goods like heavy machinery,
etc. which are first assembled by the manufacturer and are later
disassembled only for the convenience of transport is loaded in more
than one vehicle and travel separately or at intervals, the following
procedure should be followed:-
- The manufacturer will intimate, on case to case basis, his option to
avail this special procedure in writing for the complete machinery
sought to be cleared in a number of individual part consignments after
first being assembled to the jurisdictional Deputy/Assistant
Commissioner of Central Excise with a copy to the jurisdictional
Superintendent of Central Excise along with the description of such
machinery/ equipment giving its tariff classification and list of
components of such machinery/equipment in dis-assembled form and its
value and an undertaking. These intimations shall be given at least 48
hours prior to the removal on any working day.
- Though separate verification need not necessarily be made for each
and every consignment, before the removal of the first consignment
Assistant Commissioner should verify that the various part consignments
are indeed constituents of the complete machinery which has been first
- A separate invoice shall be made out for in respect of each
conveyance on which the part consignment is loaded.
- The manufacturer will pay the entire duty on the first such invoice
(hereinafter referred to as "Parent Invoice") on the basis of entire
value of the machinery unit/equipment. This parent invoice shall be
prepared quoting all vehicle numbers, total value / duty of the
consignment. An inventory shall be annexed to the invoice giving
detailed item-wise description as loaded in different vehicles.
- The details of removals and duty payment shall be entered in Daily
- Photocopy of the duplicate copy of the parent invoice duly attested
by the authorised signatory of the Company shall accompany each
- CENVAT Credit, if any, shall be taken only on receipt of parent
invoice and the entire consignment.
- Cancellation of invoices
11.1 When an assessee is compelled to cancel invoice, the following
actions should be taken:-
- Intimation of a cancelled invoice should be sent to the range
Superintendent on the same date, whenever possible. However, in case of
exceptional circumstances beyond the control of assessee should this not
be possible, the intimation should be sent on the next working day;
- Along with the intimation of the cancelled invoice sent to the
range Superintendent the original copy of the cancelled invoice should
also be sent.
- Triplicate copy of the cancelled invoice may be retained by the assessee in the invoice book so that the same can be produced whenever
required by audit parties, preventive parties and other visiting