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Purchase reurns of excise paid goods

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This query is : Resolved

Jayaprakash S (Querist)

10 March 2012 Dear Experts

Our company purchased 2600 Kgs of Copper from Mumbai thrrough Excise Invoice. Out of this some qty i.e. 60 kg's of material rejected. Now we want to reurn the rejected materials to the supplier. Please suggest the procedure ?

1. Shall we raise the excise invoice for 60 kgs rejected material for purchase return ?

Can anyone explain me the procedure of return partial goods ?

Thanks in advance.

Regards
Jayaprakash

PUNEET GOYAL

PUNEET GOYAL (Expert)

11 March 2012 As per Rule 3 (5) of CENVAT credit rules, if you have taken credit in respect of above goods then you have to pay the amount as equal to cenvat credit taken and removal shall be made under an invoice. In other words, this purchase return shall be taken as sale of goods and accordingly excise duty as equal to cenvat credit taken to be paid.

In any other case you can return above goods under a letter or challan.

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