Excisable Goods Return / Repair Procedure

1) YOU have to obtain service tax registration for "maintainace & Repair"

2) the party will send u goods under their challans stating " sent for repair / to be returned after the repair" 

3) you will have to maintain separate stock IN/OUT register with specific detaills of each consignment received and delivered.

4) While sending goods back, u have to mention on challans / invoices "NOT FOR SALE/ REPAIRED GOODS RETURNED" - stating the original challan reference and attaching a xerox copy of original challan. 

5) Issue invoice of repair and maintanance , and charge service tax subject to availment of exemption of 10L

6) keep alert that the goods received is same goods sent , if the mode/ style/ desctiption changes than it would amount to manufacture and hence excise liability will arise in your part. 

7) dont try to use the "cenvated inputs" in repair / maintanance. 

Thanx U S Sharma ji..............................