Every Registered location should maintain a stock account in form RG-23D, proforma of which is given as Annexure IV.
There are 2 situations relating to passing of MODVAT Credit by a Registered Location. A registered location receives a consignment under Rule 52A invoice from a Refinery / Installation. Then it issued invoice under Rule 57G. In the second situation, the registered location receive the consignment from another registered location on the strength of invoice/PDN under Rule 57G.
Whenever, a registered location receives a consignment under Rule 52A invoice or 57G invoice and in respect of the same, the location proposes to issue either one or more modvatable invoices, then the location should keep complete account of each such consignment and all transactions relating thereto in RG-23D register.
In respect of any consignment, part of which is sold under Modvatable invoice, and the other part under the cover of non-modvatable invoice, then the details of sales under non-modvatable invoices have also to be entered in the prescribed register RG23D by making a consolidated entry at the end of the day indicating such quantity and invoice numbers. The non-modvatable invoices are not required to be issued in the prescribed proforma.
A registered location need not enter into RG-23D Register details of those consignments received under Rule 52A invoice or 57G invoice for which it has no proposal to issue Modvatable invoices.
The registered Location should maintain the RG-23D Register at the end of the day of the day of receipt and issue of excisable goods and should correctly maintain such book, account or register and should not cancel, obliterate or alter any entry except for correction of any errors. The location should keep the books, account or register at all time ready for the inspection by the Excise officer and should permit any Excise Officer to inspect it and make any such minute as the officer thinks fit.
The registered Location can make entry in RG-23D only when MODVAT documents accompany the excisable goods. In the absence of such documents, the registered Location should not enter the details in the register
The transport document relevant for MODVAT credit should be shown in the records of the location, both while it receives the goods and also while it passes on the goods down the line through others, who will in due course claim MODVAT Credit.
For a location to issue MODVAT invoice in addition to registering itself with excise department, it is mandatory that the procurements made are on proper documents so that It can pass on the MODVAT benefit to the buyer of goods. These documents should accompany the receipt of goods. The documents based on which it can issue MODVAT invoices are:
If the procurement are directly from the Refinery, the duplicate copy of invoice under Rule 52A issued by the Refinery.
If the goods have been received from a bonded location , then the duplicate copy of PDN issued by the despatching location under Rule 52A.
If the procurements are supplied by another location that is duty paid location, then the duplicate copy of PDN issued by the despatching location under Rule 57G.
If the procurements are imported goods then the triplicate copy of bill of entry accompanying the goods.
There is no necessity of authentication of authentication of Excise officer on the Register RG-23D before it is brought into use.
In the RG-23D register, separate entries in the issue side are to be made against each valid invoice / PDN till the stock is exhausted. In case such document contains more than one registered commodity, separate entries using separate pages are to be made in the receipt portion of the register.
Books, accounts or registers of Registered Locations should be kept ready at all times for inspection by Central Excise officers. The inspection officer is permitted to make any minutes in such records. The central Excise officer is empowered to take any extract from such records.
The Registered Location on demand by a Central Excise officer should send the records to his office.
The Registered Location should preserve documents specified under Rule 57GG for a period of five years and same should be produced to the Central Excise officer as and when demanded. The documents needed to be preserved for a period of five years can be listed as under :
Documents such as original and duplicate copies of incoming invoices / PDNs under Rule 52A or Rule 57G.
Documents such as triplicate copy of MODVAT invoice, RG 23D register, monthly return and other related records prepared by the Registered Location.
Any other document prepared under Central Excise Law and related correspondence.
The documents such as application for Registration and Registration Certificate may be preserved by the registered Location permanently. Even the supplementary request made with the department for addition and deletion of certain information in the Registration Certificate may be preserved permanently.
If any Registered Location or Dealer enters wailfully any wrong or incorrect particulars in the invoice issued for the excisable goods dealt by him with intent to facilitate the buyer to avail of credit of duty in respect of such goods shall be liable to confiscation and the registered location shall be liable to penal action in terms of Rule 173Q of the Central Excise Rules.