21 April 2011
we have take credit on receipt of input. But due to quality material is rejected by our Quality deptt. How I send material back to party? What is the procedure to sent rejected material back to party? Credit taken should be reversed or not? I am new in excise field. Plz reply as soon as possible. I shaal be very thankfull to you.
25 April 2011
To receive rejected material, no intimation is required. Kindly refer to Rule 16 of the central excise rules. You can refer to this article for detailed analysis.
2. Service Tax is payable on repair and maintenance service, hence this should be paid. However, on the parts used in transformer- core, coil etc., whatever is replaced, C Excise duty is payable.
Whether you are eligible to take credit or not depends upon your use of the product.
3. You are eligible for credit. Get the invoice corrected or get communication from the supplier on his letter, which will be useful in case department raise any such issue in future.
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