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Para 10.10.4 - Short Delivery Refunds | KartavyaDesk

Goods Manual

Original Rule Text

2. If the quantity in a lot on actual weighment or count is less than the announced quantity, the seller will not make good the deficiency under any circumstances. The purchaser thereof will be entitled to obtain a refund for the undelivered quantity at the quoted rate. No interest will be paid on the amount of short, delivered quantity. The reasons for shortfall should be recorded by the stock-holder and the Head of Office (or any other officer as per SoPP) should also record his opinion. Any refund in this regard will be made with the Head of Office’s (or any other officer as per SoPP) recommendation, the Associated/ integrated Finance’s concurrence, and CA’ approval. Copies of the weighment slip will be the base for determining the refund amount. It may be necessary to investigate the ledgers for the total quantity held by the stock-holder and particularly so in the case of non-ferrous scrap; the item concerned may have to be processed for special stock verification. In case of a short delivery of the material, the refund of taxes will be the responsibility of the successful bidder only.

What This Means

Para 10.10.4 of the Manual for Procurement of Goods, 2017 deals with situations where the actual quantity of goods received is less than what was ordered and paid for. Basically, if a supplier delivers less than the agreed-upon amount, they won't be allowed to make up the difference later. However, the government department that made the purchase is entitled to a refund for the missing quantity, calculated at the original quoted price. No interest is paid on this refund amount. This rule applies to all government departments and agencies involved in procuring goods under this manual.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •If the delivered quantity is less than the ordered quantity, the seller cannot make up the deficiency.
  • •The purchaser is entitled to a refund for the undelivered quantity at the quoted rate.
  • •No interest is paid on the refund amount.
  • •The shortfall and reasons must be documented by the stock-holder and Head of Office.
  • •Refunds require recommendation from the Head of Office, concurrence from Associated/Integrated Finance, and approval from the CA.

Practical Example

The Department of Agriculture ordered 1000 kg of fertilizer from 'Green Fields Ltd.' Upon delivery and weighment, only 950 kg were received. According to Para 10.10.4, Green Fields Ltd. cannot supply the missing 50 kg later. The Department is entitled to a refund for the 50 kg at the original quoted rate of ₹20/kg, totaling ₹1000. The storekeeper, Mr. Sharma, records the shortfall. The Head of Office, Mr. Verma, reviews the record and provides his opinion. The refund is processed after approval from the Finance department and the Competent Authority, based on the weighment slip. Green Fields Ltd. is also responsible for refunding the applicable taxes on the undelivered 50 kg.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What happens if the supplier offers to supply the remaining quantity later?▼
According to Para 10.10.4, the supplier cannot make good the deficiency later. The purchaser is only entitled to a refund.
Who is responsible for initiating the refund process?▼
The stock-holder (e.g., storekeeper) is responsible for recording the shortfall. The Head of Office then initiates the refund process based on this record.
What documents are required for processing the refund?▼
Copies of the weighment slip are the primary documents. Ledger entries may also be examined, especially for non-ferrous scrap. The Head of Office's recommendation, Finance's concurrence, and CA's approval are also needed.
Is the supplier responsible for refunding taxes on the undelivered quantity?▼
Yes, the successful bidder (supplier) is responsible for refunding the taxes applicable to the short-delivered material.
Does this rule apply to all types of goods procured by the government?▼
Yes, this rule applies to all goods procured under the Manual for Procurement of Goods, 2017.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Para 10.10.4 of the Manual for Procurement of Goods, 2017, if the actual quantity of goods received is less than the announced quantity, what recourse does the purchaser have?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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