Procedure to be obtain on Returned Goods

[SURYAKANT MITHBAVKAR]

We have sales Machine to our customer who is situated in out of states in last two years back. Our customer is not satisfied the machine performance and decided to return the machine to us.

Now, we can not show the same machine as return in our books because there is condition for Out of states sales (Goods should be returned withih Six months period form the date of despatched) therefor our customer is showing sales in their books while raising sales invoice charging excise duty &CST (under Form 'c') .

The above transaction is shows the purchase transaction in our case.

Now, what will be impact if we will take the same machine is input in finance and entered in Form V register in Excise document.

If there is any misinterpretation under the Excise Law.

Please advice.

AI Summary

Company Considers Recording Returned Machine as Input Due to Customer's New Sale Invoice with Excise Duty and CST A company sold a machine to an out-of-state customer two years ago, which is now being returned due to dissatisfaction. The company cannot record it as a return because out-of-state sales must be returned within six months. The customer is issuing a sales invoice with excise duty and CST, treating it as a new sale. The company is considering recording it as an input in their financial records and Form V register under Excise Law. Responses indicate there is no time limit for returning duty-paid goods, and no adverse impact is expected if properly documented, though VAT credit may be lost.