Treatment Of cenvat credit on purchase return

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This query is : Resolved

Lalit aggarwal (Querist)

05 March 2011 I Purchase some raw material & booked cenvat credit on the same.

Meanawhile this Raw Material is found defective and return to supplier UNDER AN INVOICE and excise duty is charged on the same invoice.

now what we hav treatment of Cenvat credit(which we hav shown on purchase return voucher)

1.It should be shown as excise duty payable?
OR

2. should it be adjusted from input cenvat?

OR

3. some other treatmen.

plz provide solid Base(Rule/ Section Etc.)

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

10 March 2011 you can not claim the cenvat credit on the material rejected. if u had taken the credit reverse immediately. retrun the purchase bill (transporter's copy) to the supplier along with the rejection letter. on this document ur supplier can calim the cenvat creidt.

Otherwise take the cenvat credit on the material supplied by supplier and issue your sale invoice to the supplier but specify on the invoice that this is a rejection of the material by giving cross reference of the suppliers bill no date etc

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