Cenvat of duty on sales returned when duty paid on concessional rate without getting cenvat

[S.C. WADHWA]

Dear Experts,

We are paying excise duty on our products falling under chapters 20 and 21 @2% and not availing cenvat benefit. My query is when we get any consignment as sales return, in that case how we resale the goods without payment of duty. Please give your expert opinion.

Regards,

WADHWA

AI Summary

Cenvat credit on returned excisable goods may be available if returns qualify as inputs and meet notification conditions.
Returned excisable goods cleared earlier at a concessional duty rate and not having generated CENVAT credit for the manufacturer are treated as inputs on return; the manufacturer may take CENVAT credit of duty paid on such returned goods when the returns qualify under the applicable concessional-notification conditions, but if the goods are resold without qualifying under that notification duty must be paid again on resale.