Treatment of reimport for processing & re-export-Reg.

[RAM SHARMA]

Dear Experts,

We have exported our goods in april 2016 under rebate claim of excise duty. we have received all claims and incentives from the department. Now, due to some quality constraint we have import the same goods (re import for reprocessing and re-export) after paying all custom duty.

1) Whether we can take cenvat credit on such cvd and additional duty on such goods and can treat as a purchase ?

2) Whether we have to reverse excise duty claim and other export incentive received by the department ?

3) Whether we have to book sales return ?

Please clarify.

Thanks & Regards

AI Summary

CENVAT credit eligibility: surrender export incentives and pay duties to claim credit; bond-based reimports deny credit.
Where reimported goods for reprocessing are cleared on payment of customs duties and export incentives are surrendered, CENVAT credit may be claimed under the CENVAT Credit Rules; previously availed export incentives must be reversed with interest and the transaction treated as a sales return. If reimportation occurs under a duty-exemption bond for reprocessing and re-export, no credit arises because duties were not paid.