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

Return of duty-paid goods can be admitted and credited under excise, though VAT input credit may be lost if return periods lapse.
Seller may accept returned duty-paid goods and account for them in books and in Form V; there is no excise-imposed time limit preventing credit for goods brought back, while VAT input credit may be lost if statutory return periods for credit reversal are exceeded.