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Repairing of sales return finished goods

This query is : Resolved 

01 January 2013 Dear Sir,
We would like to know what treatment should be given as per Cnetral Excise Act to inputs used in repairing of Sales return finished goods.
Is it required to reverse cenvat credit availed on inputs which are used in repairing of sales returned finished goods?

Regards,

Gaurav G Badwe
Cost and Management Accountants

02 January 2013 Rule 16 of Central Excise Rules, 2002 will apply here. If goods are returned in original packed condition alongwith original invoice then credit can be availed on such document.

The assessee may receive the goods for being re-made , refined, re-conditioned or for any other reason and may remove the goods subsequently.

There is no need to reverse the cenvat credit availed on inputs which are used in repairing of sales returned finished goods.


18 January 2013 Yes I agree with the expert


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