excise duty on loan material

my client is running  manufacturing unit and goods are excisable. he has got orders from  govt owned unit. the required raw materials was not available in the market. hence the purchaser has given raw materials with payment of excise duty simply sent  thro delivery challan. now  my client has to return the loan material.  the purchaser is not ready to pay the excise duty.  whether my client can sent the materials (excisable) with out payment of excise duty. pl clarify. 

 

Replies (7)
I don't get you. When an excisable material is sent thro' delivery challan the recipient can not avail credit and hence he can not again pass it back to the supplier.

The transaction could have been this way :-

The Purchaser should have either prepared an invoice and sent it to the supplier (if he is registered with Central Excise) or he should have instructed the vendor to directly invoice it on the supplier.

Now if the purchaser accepts duty paid invoice that means he suffers duty twice.
Can you provide some details. i may trough some light
my client has got order from govt unit. the required raw materials was not available hence the govt unit has given raw materials on loan basis (which is excisable) thro delivery challan and also not availed modvat credit. now my client has imported the material and returning raw materials. for this imported material my client has availed modvat credit. now the question is whether my client can return materials thro delivery challan without payment of duty.
Sure You can do. But the credit availed with respect to the relevant quantity to be subsequently expunged from your RG23A Part II where you might have credited the duties from the import documents. Pls. do ask further in case of doubt.
THE PROBLEM IS TO EXTEND OF DUTY AMOUNT REVERSAL WILL BE LOSS FOR MY CLIENT.
if the goods are excisable, then you can not send the goods without payment of duty. you have to bear the excise impact if govt .organisation is not paying

I need information Loan topic in Central Excise section. Pl give the details briefly

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