Legal Question in Business Law in India

sir,

i had taken the C&f agency of one of the lubricant company, so i had deposited 15.5 lacs as per terms & condition, company had delivered the material of cost of 15 lacs and the excisable invoices of 20.6 lacs (material send in terms of over billing which is not discribed or discussed in the the terms & condition agreement).

Also according to right to information Act Report i come to know that the above discribed Excisable invoices are not shown(Excise Tax not paid ) in the books (Accounts) of the company sales return.

Accordind to the C&F agreement of the company,

1. All the Actal Marketing Expense including Salary, petrol Expense and mobile Expense will paid by the company.

2. 12% p.a bank interest will paid by the company per month basis.

3. 5% commision on the Existing Sale will paid by the comany per month basis.

But as per above three terms, company didnot paid any amount till date, so please tell me what can i do now because we had started this buissiness over draft against our own sweet home.

Sir please show me the proper way to solve or to release from this problem. and what action i need to take now to recive the payment from the company or can inform to Excise Deartment about this fraud with the Excise Tax.

lease reply me as early as possible.

thanks.

hitesh


Asked on 10/11/10, 3:41 am

2 Answers from Attorneys

Dear Hitesh,

There might be a problem for you in dealing with a company who is not paying excise duty but issuing Excisable invoices. Please clarify as to in what manner you use the excise invoice e.g in taking credit of duty etc. Dealing with such a company may lead to imposition of penalty upon you as well by the excise department.

It would be important for us to look into the whole agreement and to understand the exact business operation between you and the company. As regards the money to be paid by the company under the agreement you can initiate legal proceedings. For that you need to consult a Lawyer. But the recovery of money and excise point of view has to be taken into consideration together.

Regards

Jeevesh Mehta

Taxation and Commercial Laws Consultants

www.mavenlegal.net

Ph: 09811617186

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Answered on 10/11/10, 4:46 am
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

you may file a suit for recovery and in case the offence is made out..you may file a criminal complaint.

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Answered on 10/11/10, 11:05 am


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