Availement of Cenvat Credit on Returned Goods

[SURYAKANT MITHBAVKAR]

We had cleared goods to our customer who is not registered under C. Excise Act on payment of excise duty. The same customer want to do partial goods return to us.

Since he is not registered under C. Excise how he will pass on partial Excise duty on returned goods unable us to take credit on returned goods.

AI Summary

Cenvat credit on returned goods: invoice evidence and departmental intimation enable taking credit after unregistered buyer returns items.
Cenvat credit on returned goods may be claimed when goods cleared to an unregistered purchaser are returned, provided the manufacturer retains triplicate invoices and a written intimation from the buyer explaining the return. The manufacturer must maintain a register for returned material as required by rule 16 of the CENVAT Credit Rules and file intimation to the department documenting receipt of the returned goods to substantiate the credit claim.