Return of goods- doubt

Please note that for the goods returned by the customer, he will send an Debit Note to you saying that your account in his books is being debited.  In turn you will send an Credit Note to the customer saying that his account is being  credited in our books.  There is no need of preparing an Invoice.  In the credit note all the items will appear in credit only & on the basis of this Credit note you will be required to post the reversal entry in your books.

Accordingly your closing stock figure will change.  Entries I both the registers will be required to be made.

Dear Amit,

If your customer do not want the goods (without unloading) means, they should comments for not unlioading on their letter head, this to attached along with your inovice, if they partial/full  unload means they should raise their Excise Invoice mentioning "Cleared under Cenvat Credit Rule 3(4), 2004" on the top of the invoice.

after receiving you should inform to the your Range Supdt along with Invoice & letter head(reasons), after his satisfaction, yoy may take cenvat credit, the stock entered in Form-V book. The same may be clear within 180 days.

Thx friends for your replies

I will again submit facts more clearly.

1) The customer has received the goods.

2) The customer, not being a registered unit, has received the goods.

3) He has not used the goods. Not complaints about the quality as goods  not even checked

4) But, his requirement has been met by other sources before he could cancel order/ intimate

Now, If we allow him to return goods, we will have to credit the sale/excise/vat accounts.

 

Now please answer specifically the following.

1) in which register to credit the stock (In DSA?)

I2) n which register to debit the excise (DSA or Cenvat credit register)

3)  What remarks to write in those?

Any other advice experts may give 

 

Hi all,

Please tell me that in case of return of goods to vendor, we should issue a debit note or it is resolved by issuing a rejection note by quality department?

or should we issue a debit note against the short receiving of goods?

dear all,

             sale return ealier conception is not applicable now-a-days. Any sale return is to be treated as inputs. No need to file annexure-51 within 24 hrs to range suptd. You can take credit on the basis of party's excise invoice or collect your invoice for taking credit.

Under Central Excise, Rule 16 of the Central Excise Rules,2002 provides for treatment of return goods not only for repairs, reconditioning etc., but for any other reason. Goods should be accompanied by the documents either issued by the consignee or the supplier's own documents. In all such cases, the goods should be treated as inputs. Record them separately in the RG-1 under the heading returned goods. Take cenvat credit of the duty paid as if they are inputs. If the returned goods are to be reprocessed again, then pay the duty at the time of clearance as per the transaction value otherwise reverse the credit taken when they have been sold as such to some other customer.

I agree with CVR Sarma.  Pls go through the rule 16.  All your doubts will be cleared.

Under Central Excise, Rule 16 of the Central Excise Rules,2002 provides for treatment of return goods not only for repairs, reconditioning etc., but for any other reason. Goods should be accompanied by the documents either issued by the consignee or the supplier's own documents. In all such cases, the goods should be treated as inputs. Record them separately in the RG-1 under the heading returned goods. Take cenvat credit of the duty paid as if they are inputs. If the returned goods are to be reprocessed again, then pay the duty at the time of clearance as per the transaction value otherwise reverse the credit taken when they have been sold as such to some other customer.-- The customer is not registered under CE. Can we take cenvat credit for the excise duty in such case ?

 

Lalit kumar S