Rejected Goods by Customers

[SURYAKANT MITHBAVKAR]

We had supplied goods in June-17 charging excise duty & CST .

Now customer want to return the same as rejected and to be cleared under delivery challon.

While raising credit note to customer we have to charge them only basic value of the Goods .

Since Excise duty and Central Sales Tax already paid to the government we cannot reverse the same through credit note.

Is there any provision can customer get refund of the excise duty (Not claim input tax credit by customer) and Central Sales Tax.

[MUKUND THAKKAR]

No refund provision in excise as well GST, please check with your customer, I think he was taken credit thru TRN-1. if stock and documents are available with him.

[KASTURI SETHI]

I have already thoroughly analysed such situation. There are so many 'buts' and 'if's for getting refund claim. Whether your client has claimed ITC in TRANS-1 or not, refund is NOT possible practically. Legally as well as practically Govt. does not intend to sanction refund claim except export situation. Sh.Mukund Thakkar, Sir has rightly advised. The reason behind this is obvious. No need to explain

No use of wasting time and energy.

[DR.MARIAPPAN GOVINDARAJAN]

Thanks for the reply of the experts for the new knowledge for me.

AI Summary

Customers Can't Get Refunds on Excise Duty or CST for Returned Goods, Except in Export Cases A discussion on a forum addressed the issue of customers returning goods initially supplied with excise duty and Central Sales Tax (CST) in June 2017. The supplier queried whether a refund of these taxes could be obtained, as they were already paid to the government. Responses indicated that there is no provision for refunding excise duty or CST, as the government does not typically sanction such refunds except in export situations. It was suggested that the customer might have claimed input tax credit through TRANS-1, but practically, obtaining a refund is not feasible.