Cenvat credit on returned goods after 6 months.

[G GOSWAMI]

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

AI Summary

Cenvat credit on returned goods depends on rejection date and timely invoices; delayed transporter returns raise relief issues.
Cenvat credit on returned goods is governed by Rule 16 and Notification No. 21/2014-CE(NT); the limitation period for claiming credit runs from the date the buyer rejects the goods, and credit is allowable when returned goods and invoices comply with the CENVAT Credit Rules. If goods are returned undelivered by the transporter after more than six months from the supplier's invoice, the supplier may not be able to take credit unless relief is obtained under Rule 16(3) or from revenue authorities.