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

AI Summary

Cenvat credit reversal is required for raw materials removed as such and must be shown in the CENVAT summary of ER1.
Cenvat credit on imported raw materials removed as such must be reversed when those inputs are returned or rejected; this reversal is to be shown in the CENVAT summary section of the ER1 return and not in the goods-manufactured or "Paid" sheets. No education cess is payable on the reversal. If rejected material is exported back to the supplier, Customs approval is required and, upon authorised export, the material or its replacement may be re-imported without payment of duty.