Cenvat credit on return goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2013 Dear Experts,

Our goods are rejected at our customer end, goods are not in position to send back to us, hence customer has sent us debit note for the rejected goods, since , they are not availing cenvat, not paying duty on removals, My curry is, can we take back cenvat credit against above debit note? which was included in our invoice.

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)
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24 February 2013 For claiming cenvat credit, returning of goods is compulsory. Secondly, debit note is not an authentic document for this purpose. Therefore, you should receive the goods physically on buyer's challan along with your earlier excise invoice. Then you can claim cenvat credit on your own invoice like input as per rule 16 of Cenvat Credit Rules, 2004.
For more detail, you can read above rule or can get specific advise from any legal advisor.

Rajeev Kumar Garg
(M.Com, L.L.B.)
Consultant (Excise, Customs & Service Tax)
Ph. no. +91 7500802402

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Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)
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