Sir,
In Sale against warranty claim, Excise duty is applicable or not.
We are selling material under warranty, if customer returned material to us against warranty and at the time of replacement of this material can excise duty applicable? Pl guide.
Thanks,
Khomne R. M.
Excise Duty Applies to New Replacement Goods; Credit Available for Returned Items Under Central Excise Rules, 2002 A participant inquired about the applicability of excise duty on goods sold under warranty when returned and replaced. Responses clarified that excise duty applies to new replacement goods, with credit available for duty paid on returned items under Central Excise Rules, 2002. If returned goods are scrapped, duty on scrap may be required if applicable. Additional costs like packing and transportation must be included in the assessable value for duty. A discussion point was raised about credit eligibility for goods returned after expiry, seeking further insights. (AI Summary)
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