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Para 10.10.9 - Scrap Delivery | KartavyaDesk

Goods Manual

Original Rule Text

10.10.9 Conclusion of Delivery The seller’s responsibility ends after the consignment has been loaded and handed over to the purchaser's representative. The seller will be no party to any dispute that may arise after the loading has been completed. At the conclusion of the delivery of the lot or lots pertaining to the item of scrap, any stock left over should be verified by the Accounts Department with the book balance and any discrepancies adjusted. Such “leftover” stock may be transferred to fresh scrap of a similar description. At the conclusion, a report of the sale account of goods disposed off must be submitted to the CA and FA to show that only the material paid for (and nothing else) has been disposed of and that all payments due (and nothing less) have been credited to the relevant accounts. A format of the report is shown in Annexure 27

What This Means

Furthermore, this rule mandates a reconciliation process. After all the scrap from a particular sale is delivered, the Accounts Department must verify the physical stock remaining against the book balance. Any discrepancies need to be adjusted. This leftover stock can be added to a new batch of similar scrap. Finally, a detailed report must be submitted to the Controller of Accounts (CA) and Financial Advisor (FA). This report confirms that only the material paid for was disposed of and that all due payments were correctly credited to the government's accounts. The report format is outlined in Annexure 27.

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

Key Points

  • •Seller's responsibility ends after loading and handing over scrap to the purchaser's representative.
  • •The Accounts Department must reconcile physical scrap stock with book balances after delivery.
  • •Any leftover scrap can be transferred to a new batch of similar scrap.
  • •A final report must be submitted to the CA and FA verifying material disposal and payment accuracy.
  • •Annexure 27 provides the format for the final report.

Practical Example

The Department of Waste Management, headed by Mr. Sharma, sold a lot of scrap metal for ₹5,00,000 to M/s Steel Recyclers. After the scrap was loaded onto M/s Steel Recyclers' trucks and handed over to Mr. Verma, the department's representative, M/s Steel Recyclers discovered some non-metallic waste mixed in. According to Para 10.10.9, the Department of Waste Management is not responsible for this discrepancy since it was discovered after loading. After all deliveries were completed, the Accounts Officer, Ms. Gupta, verified the remaining scrap against the records and found a minor discrepancy of ₹500 worth of scrap. This was adjusted and added to the next scrap sale. Finally, Ms. Gupta prepared a report as per Annexure 27 and submitted it to the CA and FA for verification.

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 buyer discovers a discrepancy in the scrap *during* the loading process?▼
Para 10.10.9 specifically states that the seller's responsibility ends *after* the loading is completed. Issues discovered during loading should be addressed before the loading is finalized and the consignment is handed over.
What is the purpose of the report to the CA and FA?▼
The report ensures financial accountability and transparency. It confirms that only the scrap material paid for was disposed of and that all payments were correctly credited to the government's accounts, preventing fraud and mismanagement.
Where can I find the format for the report mentioned in Para 10.10.9?▼
The format for the report is provided in Annexure 27 of the Manual for Procurement of Goods, 2017.
What constitutes 'similar description' when transferring leftover scrap?▼
'Similar description' implies scrap of the same material type and quality. For example, leftover steel scrap should be transferred to a new batch of steel scrap, not plastic or paper scrap.
Who is responsible for the transportation of the scrap after loading?▼
The purchaser (the buyer of the scrap) is responsible for the transportation of the scrap after it has been loaded and handed over by the seller.

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 10.10.9 of the Manual for Procurement of Goods, 2017, when does the seller's responsibility for scrap material end?

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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