Sales return by EOU - procedures

[venkat eswaran]

Dear All,

We have supplied to EOU unit under CT-3 without payment of Excise duty. Due to quality problem they are [ EOU unit] rejected the matl. Now what documents they have to raise for goods return back to us?

What procedure we have to follow after reaching the rejected matl. Whether we need to inform our Excise range about this. etc., Pl share your valuable views

thanks in advance

Venkat

AI Summary

Return of defective goods by EOU requires invoice and excise intimation; duty payment or reversal of credit follows.
EOU returns of defective goods require the EOU to raise an invoice citing original invoice details and to notify the Central Excise officer; if goods were procured under a concessional duty-free scheme earlier returns could be effected without duty subject to accounting and intimation but amendments removed that accommodation and returns now generally attract duty, while goods procured on payment require reversal of any excise credit upon return. ARE 3 is not required for returns to the factory.