Goods r dispatched and duty is paid. later goods are recived back in factory due to rejection of material and cenvat credit is taken. now ques is:
a. is this credit available under rule 11
b. will the credit be availed on the basis of excise invoice sent by the buyer.
c. will these returned goods be entered in dsa and duty be paid on them on removal after reprocess?
hiii indu ji
I am new in this field but i want to try to answer your question. if there is any mistake plz ignore it.
a once we have sold any goods by paying duty from A Part II or C Part II or PLA and after that goods are sales return to us, we can take credit of the same as per Cenvat credit rules
b. yes the credit can be availed on the basis of the Excise invoice sent by the buyer provided that in that invoice there are details regarding our sales invoice
c. Yes the Excise Duty must be paid on the removal of goods after reprocess.
| Originally posted by :indu gurjer | ||
| " | Goods r dispatched and duty is paid. later goods are recived back in factory due to rejection of material and cenvat credit is taken. now ques is: a. is this credit available under rule 11 b. will the credit be availed on the basis of excise invoice sent by the buyer. c. will these returned goods be entered in dsa and duty be paid on them on removal after reprocess? |
" |
we treat returned goods as input and avail cenvat credit
You can take cevat credit & treat it as sales return. when you will resales then you should pay cevate at the time of removal of goods
will the sale returns good be taken bac on DSA? n when they r removed from factory after reprocess will duty be paid or simply the centvat credit taken will be reversed? Is thers some seperate register or sale return goods and then in that case will such goods not be taken back on dsa?
You can apply rule 16 of C. Excise Rules to sale returns. The rule permits you credit in the same manner in which credit is taken on inputs. However, instead of taking entry in DSA (RG-1), one should maintain a separate register under rule 16. The register should contain details such as date of receipt, quantity received, process carried out, and dispatch details.
The goods can be processed after receipt. Subsequent removal has to be under invoice. Excise liability upon removal will depend upon nature of the process undertaken. If the process amounts to manufacture one should pay duty at the current rate and current value. If the process does not amount to manufacture, one has to pay an amount equal to the credit taken.
goods should be intered in a seprate register. when you process then what ever the value of the goods. duty shall be levid on that amount. it means if the value of goods is more then his original value then duty shold be excess otherwise duty will be same.you pay duty either cash(p l a) threw or you may take a benifit of cenvat credit
Kindly note that question of determination of assessable value afresh shall arise only if the process undertaken on the goods received, amounts to manufacture.
If the process does not amount to manufacture, the manufacturer will have to pay an amount equal to the credit taken. This is irrespective of the price at which the goods are sold.
Text of rule 16 may please be referred.
Hi,
i am facing a problem. we purchased some excisable goods. we took the cenvat on these goods. Now we want return goods (purchase return). What excise process, I'll follow for make the purchasen return. It can possiable on challan, without genrate any invoice. we want back excise duty to our trader and reverse the duty in our books.
please provide me your expert comments with excise referance
Dear Manoj
You can send back the rejected goods on the strength of an invoice under rule 11 and consiquently you should reverse the cenvat credit that you have taken when taken on stocks.
Regards
Harendra SIngh Negi
There is Rule-3(5) (Cenvat Credit Rules) for removal of goods as such means without being used. The manufactur can return his purchased goods under this rule under the cover of an invoice. and such manufacturer has to pay an amount equal to the cenvat credit taken on the receipt of such goods. Such amount can be paid by using Cenvat Credit (As per Rule-3(4) of the Cenvat Credit Rules) or by PLA.
Dwivedi sir
tell me, what is procedure, if returned goods is defective, destroyed by natural cause, and such goods is like a gas. Can we credit duty in Part II or not? if yes tell me how what will be procedure? Is our loss of excise duty for destroyed goods? tell me urgently?
thanking you
vijay kulkarni
jaysingpur
kolhapur
Agree with sanjay dwivedi Rejected material should be entered in sepret register under rule 16 instead taking in rg1. raise invoice under rule 11 and remove such material from register maintained under rule 16 do not enter it in rg1 register.
We covered under excise but our final product is exempted so we are not taken cenvat credit on inputs. we manufacturing goods (which is exempted from duty) and selling to our cutomers. some time we getting it back as sales return. now my query is whether we have to show this qty. in DSA or we have to maintain any seperate register. kindly give your valuable suggestion in this regard.
Kindly note : we are not availing cenvat credit on inputs though our Final products is exempted from duty.
We covered under excise but our final product is exempted so we are not taken cenvat credit on inputs. we manufacturing goods (which is exempted from duty) and selling to our cutomers. some time we getting it back as sales return. now my query is whether we have to show this qty. in DSA or we have to maintain any seperate register under Rule 16. kindly give your valuable suggestion in this regard.
Kindly note : we are not availing cenvat credit on inputs though our Final products is exempted from duty.
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