Dear Sir,
We have purchased child parts last month with excise duties and now this material got rejected, now we need to send the purchase return to party. But as per Notification No.14/2014 dt.01.03.2015 cess is not applicable. Calculation as follows
Assessable Value ₹ 2,00,000
BED 12 % = 24,000
Cess 2% = 480
S.hed 1% = 240
The above duty amount we have taken credit.
Kindly help us the how much duty we need to pay.
Thanks,
Bhaskar
Guidance on Returning Rejected Child Parts: Pay Original Duty, Adjust Cenvat Credit, Notification No. 14/2014 Applies. A discussion on a forum addresses the issue of returning rejected child parts purchased with excise duties. The original poster, Bhaskar, seeks guidance on the duty to be paid upon return, given that cess is not applicable per Notification No. 14/2014. Responses vary: one suggests paying 12.50% and seeking a refund for accumulated cess credit; another advises reversing credit proportionately if cenvat was claimed; others recommend paying the duty charged in the original invoice. Despite the notification, it is emphasized that duty equivalent to the availed credit must be paid. (AI Summary)
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