Re-processing

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This query is : Resolved

K.MASTHAN BAVA (Querist)

23 September 2011

Dear All,

We are one of the Cement Manufacturer, we have done stock transfer of cement to our godown by discharging Excise Duty. But due to quality problems Material has come back to factory for re-processing. Now how i can proceed.
1. Can I do cancellation of Excise Invoice? If yes, (Material cleared from factory on 06.09.2011 and returned back on 20.09.2011)after crossing factory gate is it possible.
Is there any other alternative available, if yes, please suggest us the procedure.
The matter is very urgent please suggest us.

Thanks & regards
KMB

S.P.Mahanta

S.P.Mahanta (Expert)

23 September 2011 Procedure to be followed listed below:

1)No need to cancel excise Invoice issued.

2)Avail cenvat credit of duty paid on goods removed,received back as rejected & returned as in case of inputs.This is permissible under Rule 16 of CER'2002.Cenvat credit can be availed on face of original/transporter copy alongwith rejection note.

3)Inform jurisdictional Superintendent Excise the fact in Annex 51 under ack.

4)Qty to be stored separately,may be used for further reprocessing for removal on payment of duty.

Hope you wil find same in order.

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