Taking of Excise credit on re-sale of rejected material

[sachin shilamkar]

We are dealer having Import Code under excise under which we have imported material and sold it locally to a manufacturer by transferring CVD & ACD.

Manufacturer has rejected partial material due to quality issues and returned it by issuing excise invoice under the same excise code of importer.

Now we need to resale the same material to another party. So we need to pass on the duty to the same.

Can we use the original bill of entry details against which we had imported the material or we have to use the invoice details under which the manufacturer has returned the material to pass on the duty.

AI Summary

Dealer Seeks Guidance on Reselling Returned Goods and Duty Transfer Under Existing Circulars; Consult Range Officer for Invoice Adjustment. A dealer with an import code under excise imported materials and sold them to a manufacturer, transferring the CVD and ACD. The manufacturer rejected part of the materials due to quality issues and returned them with an excise invoice. The dealer now wishes to resell the materials and pass on the duty. The query is whether to use the original bill of entry or the return invoice for duty transfer. The response advises maintaining a record of returned goods and consulting the jurisdiction Range Officer to cancel the original invoice and issue a new one, following established procedures in existing circulars.