Rejected materials

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Anirudha kabi (Querist)

07 June 2012 I am a manufacturer and i have taken excise registration. i have dispatched material to non exciseable company(local).he has rejected my material.How will i make entry of rejected material and where.What are the proedures.By which rule of excise can i take entry and in which rule i can take cenvat credit.

Ajay Raghatate

Ajay Raghatate (Expert)

08 June 2012 Central Excise Rules 2002

RULE 16. Credit of duty on goods brought to the factory. -

(1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules.

(2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be.

Explanation. - The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by the manufacturer who removes the goods.

(3) If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reason and may remove the goods subsequently subject to such conditions as may be specified by the Commissioner.

You have to intimate to range office reg return of Material in Annex A & make the entries in D-3 Register.
Plz go thru this link

https://excisenashik.gov.in/nashik-commissionerate_files/TN/09-2006.pdf

Ajay Raghatate

Ajay Raghatate (Expert)

08 June 2012 https://excisenashik.gov.in/nashik-commissionerate_files/TN/09-2006.pdf

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