How to treat and resale duty paid goods returned

[Ramesh Patel]

We are mfg of infrastructure products. The contractors after completion of work returns excess material lying at site or part of material supplied due to technical problems. As per Excise we need Excise Invoice to claim cenvat for the same. But this contractor aren't registered under excise. And they can't raised invoice of service tax for goods returned. Pls suggest how to treat this issue. And if we doen't take cenvat on returned goods. How to resale it and how to record it.

[Rama Krishana]

Your facts are not complete to provide suitable solution. But, in my view, based on certain assumptions, in the present scenario, it is difficult to claim cenvat credit by you.

[Ramesh Patel]

thank u for reply Mr. Rama Krishan,   I will explain u step by step. a) Material sold to contractor with excise duty b) material return by contractor on rejcetion note c) I am not claiming cenvat for material return by contractor but want to sale it again without excise duty.  Pls give your comment wheather I can sale it or not. If I can sale it what is the procedure to be followed.  As per opinion of late Gunashekheran (Excise expert) we can sale it on simple delivery challan.

AI Summary

Resale of returned duty-paid goods raises excise documentation and CENVAT implications before duty-free disposal. The issue concerns resale of goods sold with excise duty that were returned by an unregistered contractor who cannot issue an excise invoice; the manufacturer is not claiming CENVAT on returns and asks whether the goods can be resold without charging excise and what procedure (one suggested option being a delivery challan) and records are required, while an initial reply indicated incomplete facts and that claiming CENVAT on such returns appears difficult.