Re. reverse entry of exise duty paid on sales invoice.

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This query is : Resolved

Manav (Querist)

01 September 2013 hi. Our client having manf. unit of copper wire. party raised one sales invoice in 2012 sept. and sebsequently there is an material return by customer in dec. 2012. our client entered in sales return their books but in er.1 sales return and excise duty on their could not be done. is there any way to show that excise duty credit in our current month er.1 manav 9997204269

Arun Kumar Singh

Arun Kumar Singh (Expert)

02 September 2013 As per Rule 16 of the Central Excise Rules, when duty paid goods are returned to the factory, the manufacturer is entitled to take Cenvat credit of the duty paid as if such goods are inputs under the Cenvat Credit Rules.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

02 September 2013 As per Chapter vii-A of Excise Act, In case of Refund of Excise duty on sales return it Compulsory to Intimate Excise Commissioner in writing in the proper form within twenty-four hours of such re-entry or within such further period not exceeding ten days, as the Commissioner may, on sufficient cause being shown, permit in any particular case, to enable the proper officer to verify the particulars of such goods within forty-eight hours of receipt of the information;

However in your case you failed to inform till date about Sales Return you can't claim for refund of excise duty.

But as per rule 16 of CCR 2004, you can claim Cenvat Credit of Excise duty paid on such sales return.

Regards,

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