Treatment of excise duty on credit notes

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Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2013 what is the treatment of excise duty, in case of credit note raised to customer for the sales return, whether excise duty already paid on that can be reversed or that is a loss?
Pls. reply...

Arun Kumar Singh

Arun Kumar Singh (Expert)
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09 May 2013 You can take the cenvat credit on return goods but intimate to the department and do the entry to the return goods.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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09 May 2013 No cenvat credit allowed on credit note. cenvat credit allowed only on Invoice basis. ask party for sale invoice under mantioned rejected goods return to party purchase vide inv xxx dated xxxxx. under section 8 under central sales tax act.

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Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)
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11 May 2013 I am agree with reply of Mr. Ram Avtar Singh but I want to add further that if party is not issuing their invoice for goods return, they can return the goods on their challan along with our sale invoice (Both Original & duplicate copies); then we can take cenvat credit on our invoice supporting to their challan and under intimation to department.

This is correct that debit or credit notes are not prescribed documents as per Rule 9 of Cenvat Credit Rules, 2004.
THANKS.
Please click on "Thank User", if you are satisfied with my reply.
Rajeev Kumar Garg
(M.Com, L.L.B.)
Consultant (Excise, Customs & Service Tax)

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