way to take cenvat credit on duty paid goods return as per amended rule 9 of cenvat credit rule 2004

[Guest]

dear sir,

we are manufacturer and we are selling finished goods (duty paid goods) to our branch and other third party but if they send back those goods after 1 year because poor condition for repairing in this case how can i take these credit of my duty paid goods because in budget 2014 our F.M. has amended rule 9 of cenvat credit rule 2004 and limit has been binded only for 6 month . so in there any way out because it is not possible that goods comes within a six months because if i provide warranty then they can send after 6 months .

for example. i (ho) sends excisable duty paid goods sends to my branch jaipur on dated: 1/12/13 and branch sales the same goods to its customer as a local sales on dated: 15/12/13 but customer sends back this goods to branch on dated: 15/9/14 and same goods branch sends back to me (ho) for repairing purpose so in this case what is the way to take credit back on sales return goods . what should i do for this case ? because we received sales return after 6 month and branch will make commercial invoice in the name of ho.

other issue is that on which date should be consider for sales return goods for take credit?

1) when goods are sent after paying excise duty (modvat copy date) or

2) branch will send and make commercial invoice of gr. (commercial invoice gr. date)

let me clear for taking credit which date should be considered?

it's very critical issue and i am sure every business entity will have this same problem.

i just hope that i will get resolve as early as possible with positive.

regards,

Manan Pandya

Mo :9510018659

[Madhukar N Hiregange]

The 6 months rule could be a big problem for returned goods also.

However a possible practical way out is to maintain a register of all goods returned and after repair being sent back as such without any duty paying document.

If credit needs to be passed back then there maybe need to be regd as a dealer under CE and issue an invoice as a 1st stage dealer.

[Guest]

dear madhukar sir,

thank you for your prompt reply still i have a confusion regarding cenvat credit taken on goods return under rule 16 of the central excise rule 2002.

the same confusion creates because our F.M. has amended cenvat credit rule 4 and rule 7 of the cenvat credit rule 2004. but he has not amended rule 16 of the central excise rule 2002.

so this six months time limit will be applicable to rule 16(brought back duty paid goods into premises) also ?

i hope i will clear my doubt from your positive reply as given in previous reply.

regards,

Manan Pandya

Mo :9510018659

[Madhukar N Hiregange]

Rule 16 specifically mentions that credit can be taken as if such goods are recived as inputs under the CCR and utilize this credit accordingly..

Therefore restriction may apply.

Advisable to opt for the route suggested by me.

AI Summary

Time-limit on cenvat credit may bar claims for late returns; maintain registers and consider dealer invoicing workaround. The amendment imposes a time-limit for claiming cenvat credit on duty-paid goods returned after sale; goods brought back and treated as inputs are likely subject to that restriction. Practical steps include maintaining a register of returned and repaired goods, and, if credit must be reinstated, using dealer registration and intermediate invoicing as a commercial workaround, although this is an administrative measure rather than an express statutory exemption.