Procedure for sales return

[Asked by Guest]

what is the procedure to account sales return in case the order is cancelled.

 

[Rajesh Nathoo]

Dear Mr. Sunil banderkar ,

U can take the cenvat credit on the duty paid by u while u have removed the goods.  Original invoice issued by u is  the valid document on which u can take the credit .  It should reflect in ur  other records that said goods have been received in the factory as such .

AI Summary

Cenvat credit admissible on duty paid at removal where sales cancelled, subject to invoice and receipt records.
Cenvat credit may be claimed for duty paid at the time goods were removed even if the sale is subsequently cancelled, provided the original invoice issued on removal is produced as the valid document; the claim must be reflected in accounting records and supported by factory records evidencing receipt of the returned goods.