ER1 RETURN RELATED RM REMOVED AS SUCH WITHOUT 2% AND 1% WHICH WE ARE NOT GETTING BUT IN MONTHLY RETURN CAN WE FILL UP RETURN WITHOUT SHOW OR ENTER AS IN RETURN AS RM SALES

[nandankumar roy]

SIRJI,

WE PURCHASING RAW MATERIAL BULK DRUGS AGAINST PREPARATION FOR FORMULATION MEDICINE AGAINST IMPORT WHERE WE ARE GETTING MODVAT CVD + 4% SP DUTY AND NOT GETTING CREDIT ON EDU CESS AND SEC EDU CESS BUT WHEN WE ARE REMOVED PARTY AS SUCH BASIS DUE TO REJECTION OR RETURN AT THAT TIME ON RETURN SUBMISSION WHETHER 2% AND 1% PAYMENT COMPULSARY ON RM AS SUCH SALES ,IF NOT WHERE WE HAVE TO SHOW THE IN RETURN. IN ZERO DUTY PUT ON PLACE OF RESPECTIVE AREA APPLICABLE AND WHERE 4% ADD DUTY WE HAVE TO SHOW .PL HELP

[Santosh Mali]

Fact of the case:-

Import where you are getting CVD +4% Addl. Duty Credit. In case of Rejection or Removal of RM under Rule 3(4) of CCR,2004 if same has to be reversed or Cess has to be added ?

and if same is to be reflected ER1.

Suggestion:-

As RM is removed as such, equivalant Cenvat Credit availed needs to be reversed as per Rule 3(4) of CCR, 2004. No need to apply Cess on such Cenvat reversal.

If RM is rejected and needs to be send to sent back to the supplier, need to apply customs for sending the rejected material (i.e. at the time of export) on approval of Customs authority, same material or Replaced material may be re-imported without payment of duty on the strength of the Customs approval.

In ER1 where - Material is removed as Such - Reversal of Cenvat Credit needs to be relected in Summary of Cenvat Credit Availed and Utilized. Such removal do not have any effect in 1st section of ER1 i.e. Details of Goods Manufactured Section.

[Yatin Bhopi]

Absolutely correct..!. There is no need and you cannot able to add RM sale in return sheet. If you add the RM sale in Return sheet of ER1 error will be appear while validating "Paid" sheet.

Just reflect the CENVAT reversal amount in CENVAT sheet.