Whether Adjustment of Central Excise Duty paid @1% can be done if the jewellery is returned

[Anish Goyal]

A manufacturer cleared a jewellery set on 05.03.2016 on payment of Central Excise Duty @ 1%. However, on 18.03.2016, the same is returned back by the customer.

Now, can I adjust the 1% central Excise duty already paid on jewellery subsequent sales?

AI Summary

Can a Manufacturer Adjust Paid Excise Duty for Returned Jewellery? Exploring Rule 16 of Central Excise Rules, 2002 A manufacturer paid a 1% Central Excise Duty on a jewellery set sold on 05.03.2016, which was returned by the customer on 18.03.2016. The query is whether the paid duty can be adjusted for future sales. One response suggests that the adjustment depends on the grounds of return, referring to Rule 16 of the Central Excise Rules, 2002, which addresses the handling of returned goods and their excise duty implications. Another response concurs with this view, emphasizing the relevance of Rule 16 in such situations.