Rejection Case for the Material which is brought using PAC - Certificate for ED Exemption

[Guest]

It is observed that, in various instances material was rejected after Receiving in Construction Plant Which is dispatch by Vendor from Manufacturing unit using  Project authority Certiifcate for Excise  Duty Exemption . Whether the  Material is to Be used by Rectifying at Construction Area or It has to be returned Back to Manufacturing Unit. Kindly  Guide so that Suitable Action can be taken

Thanking You

Regards 

E M V

[Arun Kumar Singh]

You should return to this material to principal manufacturer they can rectify the goods. If goods will not rectify then manufacturer can take the cenvat credit on own invoice. 

AI Summary

Excise duty exemption certificate: return rejected goods to manufacturer for rectification; cenvat credit if not rectified. Rejected goods sent under a Project Authority Certificate claiming excise duty exemption should be returned to the principal manufacturer for rectification; if the manufacturer cannot rectify the goods, the manufacturer may take cenvat credit on its own invoice.