We are in receipt of Rejection from Customer on Excise Invoice, but the material was sold before 3 years, the customer had not approved the material since than.
please let us know whether the Cenvat credit can be availed , if yes how, also whether MVAT allow the same.
Company Can Claim CENVAT Credit on Rejected Goods Per Rule 16, But No MVAT Credit After Six Months A customer rejected an excise invoice for materials sold three years ago, and the company seeks advice on availing CENVAT and MVAT credits. An expert clarifies that under Rule 16 of the Central Excise Rules, 2002, there is no time limit to return unused goods in original packaging, allowing CENVAT credit. However, the MVAT Act only permits rejection within six months of sale, disallowing input tax credit under MVAT. Another expert concurs on CENVAT credit availability but advises maintaining corroborative evidence and requisite documentation for the transaction. (AI Summary)
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