cenvat credit in case of sales return

[sanjay gajera]

Dear Sir,

Pls give me information about cenvat credit in case of sales return as such raw materials from non register excisable unit  

We had sale raw materials to other party which is non register excisable unit, after some time that party gives us some goods return to us. In this case we can avail excise duty credit or not.

[Surender Gupta]

To avail cenvat credit on returned goods, you must have Duty Paying document. Rule 16 of the Central Excise Rules, 2002 allowed to avail cenvat credit on returned goods. In your case it appears some difficulty in availing the credit.

[Thirugnanaprakash M]

Sir,

We can availe this type of supply as a input credit based on our Original and Duplicate Invoices or Assessee Copy of our Invoice.

Regards,

Thirugnanaprakash.

AI Summary

Cenvat credit on returned goods requires a duty paying document; invoices may qualify under Rule 16 in practice. Cenvat credit on goods returned by a buyer is claimable only where the recipient produces requisite duty paying documentary evidence; returned goods may qualify for input credit when supported by original or duplicate invoices or other duty payment records, though practical difficulties in availing credit have been noted.