Dear Sir,
We have clear goods under ARE3 against CT3 issued by the Customer (EOU unit) without payment of duty. Now due to rejection of such goods EOU unit has cleared goods back to us under payment of duty. So what we shall do can we claim such cenvat credit on such returned goods by eou unit as per rule 16 of Central Excise rules 2002.and whether we would be require to pay duty for such goods which we have cleared without payment of duty under ARE 3 against CT3 certificate,please explain, thanks and regards.
Can a company claim CENVAT credit on returned goods under Rule 16 after duty-free clearance? Explore Notification 22/2003 CE. A company cleared goods under ARE3 against a CT3 certificate issued by an Export Oriented Unit (EOU) without paying duty. The EOU rejected the goods and returned them, paying duty. The company seeks advice on whether it can claim CENVAT credit on the returned goods under Rule 16 of the Central Excise Rules, 2002, and if it needs to pay duty for the initially duty-free cleared goods. A respondent suggested referring to Notification No. 22/2003 CE for guidance. (AI Summary)
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