Ref.Notification No. 21/2014-CE(NT) w.e.f 01.9.2014. I shall be highly obliged to have your kind opinion in the following matter.
In many cases we receive return goods under Rule 16 of CE Rules 2002 for repair/reprocess/ further despatch/any other reasons from our customer,transporter's godown beyond six months covering our own invoice through which duty had been paid for their initial despatch and we avail cenvat credit on them without dispute.Whether there will be any problem to avail cenvat credit after 01.9.2014 as per the said notification or how the cenvat credit could be availed after 01.9.2014 under the aforementioned situations.
Regards,
G.GOSWAMI
Eligibility for CENVAT Credit on Returned Goods Beyond Six Months Under Rule 16; VAT Law Considerations Highlighted A query was raised regarding the eligibility to avail CENVAT credit on returned goods after six months, following Notification No. 21/2014-CE(NT) effective from September 1, 2014. The discussion highlighted that Rule 16 of the Central Excise Rules, 2002 does not impose a six-month return limit, but issues may arise under West Bengal VAT laws. Experts clarified that credit can be availed if the goods are returned with proper documentation, either under the seller's or buyer's invoice. If goods are returned undelivered after six months, the supplier may need to seek permission from the Commissioner of Central Excise. (AI Summary)
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