Clearance of goods under ARE3 against CT3

[Asked by Guest]

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.

[Mahir S]

Refer noti no 22/2003 CE

AI Summary

Cenvat credit entitlement questioned after duty free ARE 3 clearance when goods are returned and duty paid.
Supplier cleared goods duty free under an ARE 3 against a CT 3 certificate issued by an EOU; after rejection the EOU returned goods under payment of duty. Query whether supplier can claim Cenvat credit on the returned goods and whether supplier must pay duty for the earlier duty free clearance. Response: refer to notification 22/2003 CE and the relevant central excise rules for applicable conditions and procedures.