To take credit of import duty
This query is : Resolved
Ashish Pardesi
(Querist)
06 July 2015
we exported material under rebate, that material returned by party, and we paid import duty for that, now i want to know can we take credit of import duty? if yes? on which document we can take credit?
Arun Kumar Singh
(Expert)
06 July 2015
If you are manufacturer then you can take the cenvat credit of CVD and SAD.
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Ashish Pardesi
(Querist)
06 July 2015
yes we are manufacturer, and difficulty is that in which we can take credit? RD23 A or RG23 C?
Arun Kumar Singh
(Expert)
06 July 2015
It will be entered in RG23A.
Message likes :
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Ashish Pardesi
(Querist)
06 July 2015
thanks for your suggestion.
Ashish Pardesi
(Querist)
06 July 2015
Dear sir,
i want to know that can we take this material as fresh import or sales return in our stock ledger? because we exported this material last year, and received in current year. pls. suggest me earlier.
thanks.
i want to know that can we take this material as fresh import or sales return in our stock ledger? because we exported this material last year, and received in current year. pls. suggest me earlier.
thanks.
02 August 2025
Here's a clear explanation to your query about import duty credit and handling returned exported material:
---
### 1. **Can you take credit of import duty when exported material is returned?**
* **Yes, if you are a manufacturer, you can take CENVAT credit of import duties** like **CVD (Countervailing Duty)** and **SAD (Special Additional Duty)** paid on the returned material.
* This is because the returned goods are considered as fresh imports for your inventory and manufacturing process.
---
### 2. **Which document to use for taking credit — RD-23A or RG-23C?**
* **Credit of import duty on such returned goods is claimed through RG-23A (application for CENVAT credit of inputs or capital goods).**
* RG-23C is generally used for refund claims, not for credit.
* So, you should enter the credit in **RG-23A**.
---
### 3. **How to record the returned material in stock?**
* Since the material was exported last year but returned this year, **you should treat this material as a fresh import** in your stock ledger.
* This means:
* Stock it as fresh input material.
* Import duty paid on it can be credited as explained.
* Do **not** treat it as a sales return since the original sale was export under rebate (assumed duty-free or rebate allowed).
---
### 4. **Additional Suggestion**
* Maintain all relevant documents properly:
* Original import documents.
* Export invoices.
* Return shipping documents.
* Import duty payment receipts.
* RG-23A form filed with customs.
* This will support your claim for CENVAT credit during audit or assessment.
---
---
### 1. **Can you take credit of import duty when exported material is returned?**
* **Yes, if you are a manufacturer, you can take CENVAT credit of import duties** like **CVD (Countervailing Duty)** and **SAD (Special Additional Duty)** paid on the returned material.
* This is because the returned goods are considered as fresh imports for your inventory and manufacturing process.
---
### 2. **Which document to use for taking credit — RD-23A or RG-23C?**
* **Credit of import duty on such returned goods is claimed through RG-23A (application for CENVAT credit of inputs or capital goods).**
* RG-23C is generally used for refund claims, not for credit.
* So, you should enter the credit in **RG-23A**.
---
### 3. **How to record the returned material in stock?**
* Since the material was exported last year but returned this year, **you should treat this material as a fresh import** in your stock ledger.
* This means:
* Stock it as fresh input material.
* Import duty paid on it can be credited as explained.
* Do **not** treat it as a sales return since the original sale was export under rebate (assumed duty-free or rebate allowed).
---
### 4. **Additional Suggestion**
* Maintain all relevant documents properly:
* Original import documents.
* Export invoices.
* Return shipping documents.
* Import duty payment receipts.
* RG-23A form filed with customs.
* This will support your claim for CENVAT credit during audit or assessment.
---
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