AVAILEMENT OF CENVAT CREDIT ON RETURNED GOODS

[Guest]

Dear Sir

we send material dated.04.03.2017 to our client. Material reach to the client and material found in damage condition the send back to our factory on reject note with our invoice

we can take cenvat credit on return goods Please advice.

Regards

Gorakhnath Kharade

9920200983

[Nash Industries I Pvt Ltd]

Credit can be availed.

Regards

S.Ramaswamy

96860 88864

[KASTURI SETHI]

Dear Querist,

Credit is available under Rule 16(1) of CE Rules, 2002. Further Rule 16(2) and (3) are also relevant on this issue.

[Ganeshan Kalyani]

Yes the credit is eligible. The documentation in such case is important. The reference of original invoice should be there with the debit note.

[YAGAY andSUN]

If whole quantity is being returned then it can be also on the invoice of suppliers and if proportionate quantity is being returned then it can be on the invoice of customer. CENVAT credit can be availed under Rule 16 (1)/(2) /(3).

AI Summary

CENVAT credit on returned goods may be availed where invoice adjustments and documentary evidence substantiate the return. Availability of CENVAT credit arises where goods returned as damaged are supported by documentary adjustments; credit is claimable provided procedural compliance with the CENVAT rules and linkage to the original invoice through a debit note or invoice adjustment. Whole consignment returns can be adjusted on the supplier's invoice, while proportionate returns may be adjusted on the customer's invoice, with clear documentation proving the return and referencing the original invoice.