Cess for purchase return

[vuchcholla Bhaskar]

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

AI Summary

Reversal of cenvat credit required on purchase returns; repay duties equal to credits claimed despite cess exemption.
When goods on which cenvat credit was taken are returned as such, the cenvat credit must be proportionately reversed and the buyer must pay duties equal to the credits previously availed, including any cesses; any refund or recovery thereafter must be sought through the prescribed administrative submission to the revenue authority.