AVAILEMENT OF CENVAT CREDIT ON RETURNED GOODS

[SURYAKANT MITHBAVKAR]

We have received returned Goods (Partial) from our customer which were cleared in month of Nov-13 (Last Year) with payment of duty.

Our customer is not registered under C.Excise Act hence he is not able to issued returned invoice with effect of excise duty. He is given us our Transporter copy sent them at the time of clearance alongwith their debit note for returned goods.

The above case whether we are eligible to take cenvat credit on basis of our Transporter copy (where goods returned partial not full) if yes please give us procedure.

Secondly, As per new cenvat credit Act we can avail cenvat credit within six month from the date of invoice but our base invoice for taking cenvat credit is our Transporter Copy which is issued on Nov-13 (Last Year) whether cenvat credit is allowed in these case.

AI Summary

Cenvat credit on returned goods depends on recognised documentary endorsement and the six month document limitation.
Availability of CENVAT credit on returned goods turns on having a document recognised under the CENVAT rules (for example an endorsed supplier invoice or transporter copy) and compliance with the six month limitation for taking credit; preservation of transporter copy, debit note and gate records is essential. Administrative clarification states the six month restriction applies to taking credit for the first time on an eligible document, while certain re credit provisions remain treated as exceptions only where specifically referenced in the Board's circular.