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

[Asked by Guest]

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

Cenvat credit reversal required when returned excisable goods are cleared as scrap, with RG-1 entries and credit notes.
Returned excisable goods destined for scrap require treatment based on whether cenvat credit was availed: no credit availed - no duty payable on scrap clearance; credit availed - record the credit on receipt and reverse the entire credit when cleared as scrap. Show scrapped items in RG-1 under the scrap section with invoice references; issue appropriate credit notes to buyers and make accounting adjustments with professional advice. VAT/CST adjustments may be claimable within statutory time limits.