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Excise duty liability in case of consignment goods return

EXICSE (Legacy) 496 views 3 replies
IN CASE WHERE PARTY A SENDS THE GOODS TO PARTY B UNDER A CONSIGNMENT AGREEMENT AND PARTY B SELLS THE GOODS TO PARTY C WHO THEN REJECTS THE GOODS AND RETURNS THE SAME TO PARTY B. CAN PARTY B RESEND THE GOODS BACK TO PARTY A AND REVERSE THE EXCISE DUTY THEREIN ??? IF YES THEN WHAT PROCEDURE IS TO BE FOLLOWED
Replies (3)

this might be help full

/forum/sales-return-in-excise-for-manufacture-175461.asp

For Sales Return, no need to intimate to Range Excise.  For goods cleared under ARE1 OR ARE3, and if the same returned back then it should be intimated to Range Office. Records of sales ruturned goods can be maintained through seperate register (other than DSA - Daily Stock Account) which may be called Returned Goods Stock Register. Cenvat credit can be availed after taking entry in Returned Goods Stock Register.  The clearance of returned goods after its manufactuirng or as such, can be recoreded in this register. If returned goods clared as such, then duty is payable equal to credit taken.  If returned goods is cleared after manufactuirng / re-processing, then duey is payable at current rate of duty. Details of returned goods receipt & re-despatched should reflect in ER-1.  Details of receipt & redespatch can be shown in seperate row in ER-1 with remarks for returned goods under rule 16.    

 

In excise, this is treated as sales return. B can take CENVAT of this returned goods in his register. But there must be a rejection letter, invoice and LR with the material.

Then B can send this material to A as Sales after debiting the excise duty.


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