How to Maintain Records of Return Material

[Ajay Singh]

Dear Sir,

as we are a manufacturing Proprietor Ship Firm at Haridwar (Uttarakhand). we have sold some Cosmetics Items to our Customer but after some Days the Customer is Sending Return Material.

so i want to know how to maintain this return Qty in RG1 Register. how to do.

Regards,

Ajay SIngh

[KASTURI SETHI]

Procedure is laid down under Rule 16(1) of Central Excise Rules, 2002. RG-1 Stock register is meant for finished goods. For proper accountal you can maintain Form V Register (Still available and being used by the assessees for their convenience). This register is meant for accountal of duty paid goods received back in the factory.

[Ajay Singh]

Dear Sir,

Thanks for your answer, can you please share the Format of Form V.

so that i can filled.

Regards,

Ajay Singh

[KASTURI SETHI]

It is available on internet on some website.My clients are using this register. It is easily available from stationery sellers who sell CE forms like ARE 1,GAR 7 Challan, Job work challan, job work register etc.I have not pro forma at present. This register contains columns like. Serial No. 2.Name & Address of party from whom received 3. Original Invoice No

Date 4. Reasons for receiving back Whether require a Reprocessing, reconditioning Qty. Received Date of redesptach etc. There are two three more columns.

[Ajay Singh]

Thanks for your co operation

Regards,

Ajay

[YAGAY and SUN]

Form V is no more statutory records now.

[KASTURI SETHI]

Dear Querist,. There is no ban or restriction of any kind for maintenance of old Form V register. It is now private register and equal to your books of Account. You should sign First and last page and give a certificate on first that this register contains 1 to. pages. It will be a legally valid register. Most of the assessees/manufacturers are maintaining this register. Not any wing of the department objects to this. Visiting officers are happy with because this register is convenient for both. It is very useful while getting audit conducted.

[YAGAY and SUN]

Contents of Form V can be used to develop a similar format in Computer Systems for better maintenance and further analysis purposes.

[KASTURI SETHI]

Statutory records - Dispensation of - Amendment of Central Excise Rules for dispensation of statutory records maintained by the manufacturers with effect from 1st July, 2000 and for other purposes

Circular No. 536/32/2000-CX., dated 30-6-2000

[Rizwan Ullah]

Can 't we follow the procedure :-

Rejected material can be received "as such" and entries can be made in RG- 1 under the column " other receipt" that rejected material will be part of stock which can be reprocessed and dispatched again.

Please educate ..

[KASTURI SETHI]

I do not agree with you. RG-1 Register stands for finished goods only.

[Rizwan Ullah]

Kasturi Sir, Generally practice is being followed where rejected goods are received as such , Excise has never objected against it. These goods are re - processed and cleared as fresh finished goods on payment of fresh Excise Duty. We have column in RG-1 where finished goods and semi - finished goods details are maintained..

[KASTURI SETHI]

Dear Querist,. W.e.f. 1.7.2000 both Form V and RG-1 Registers are non-statutory records.These are private records now. I have told you the official purpose of both registers. These registers being private records, you can add or delete any column as per requirement. Nobody will object. The main purpose is accountal of production should be proper. Semi- finished column cannot be used for every final product. Some products require the column of semi- finished to be filled up. Column of semi- finished goods was created for recording of finished goods.

AI Summary

Recordkeeping of return material: maintain a Form V style private register for duty paid returned goods, not RG1.
RG1 is intended for finished goods accountal; returned duty paid goods are properly recorded in a Form V style register capturing sender, original invoice, reason for return, quantity, reprocessing and re despatch. Form V and RG1 are no longer statutory records and may be retained as private books of account; taxpayers may modify or computerise the format provided stock and production accountal remains accurate and authenticated for audit.