sales return under rule 16 central excise

[Anil Jangid]

Sales return under rule 16 of central excise,is it necessary to submit intimation to central excise dept for goods return due to quality problem or party not accept the material.

Some commissionerate issue trade notice and make rule submit intimation.

AI Summary

Sales return compliance under central excise rules: no intimation required for returned goods; maintain records and claim CENVAT.
Sub rules (1) and (2) of Rule 16 require manufacturers to record particulars of returned goods and permit claiming CENVAT credit on duty paid as if received inputs, subject to duty payment where processes do not amount to manufacture or on subsequent removal at applicable rates; proper accounts for receipt and disposal must be maintained. Administrative trade notices mandating intimation of each return exceed these requirements and are ultra vires, while sub rule (3) permits the Commissioner to impose conditions where compliance with sub rules (1) and (2) is impracticable.