what will be the stock treatment of excisable sold goods are returned from buyer

[manan pandya]

Dear Experts,

we are manufactured Excisable (Dutiable Goods) and sold to domestic market for that we are maintaining RG-1 (Daily stock register ) . after selling, sometimes party returned some defected / breakage / poor condition goods.

those returnable goods we will not use for reconditioning / repairable actually al returnable goods are scrap for us and we are cleared as scrap so what will be treatment for this goods return transaction for stock quantity ? should i require to shown in RG-1 ?

and what will be financial treatment will be given to party ? what will be the treatment of excise duty?

pls. guide us how to maintain it ? and how to show this goods return transaction.

regards,

Manan Pandya

AI Summary

Guidance on Handling Returned Scrap Goods and Excise Duty: RG-1 Register and CENVAT Credit Considerations A manufacturer of excisable goods inquired about handling returned goods that are deemed scrap. The discussion focused on whether these returns should be recorded in the RG-1 register and the financial treatment of excise duty. An expert advised that if no CENVAT credit is availed, there's no need to pay duty or show the goods in RG-1. If a debit note with excise effect is issued, excise credit must be given, leading to a financial loss. Another expert suggested availing CENVAT credit on returns, then reversing it upon clearance as scrap, and consulting a chartered accountant for financial entries.