Sales Returns - taken Cenvat Credit

[Laxmaiah Vanamamula]

We cleared some Finished Material to Buyer(before 8 Months),presently the Buyer returned Partially Goods from above

the The Question is what is Proceeser of entered the above goods & taken Cenvat Credit,

Please reply as early as Possible,

Thanking You,

from,

V.Laxmaiah, Sudhakar Pipes 

 

[Snehal Kulkarni]

Please refer the Rule 16 of CER 2002.

 

The sales returned goods needs to be kept seperately and have to intimate to local excise office immediately after receipt.

IF the officer doesnt react within 24hr from the date of intimation, you have to take the goods for further processing.

You can avail the CEnvat credit of these goods which has to be accounted in Form V register.

If you have take the Cenvat Credit and the process which you are going to carried out doesnt amount to manufacture then the quantum of cenvat credit needs to be pass which was taken at the time of receipt

If the process carried out amounts to manufacture, then the duty needs to paid on transaction value.

Hope this clears your doubt.

 

AI Summary

Cenvat credit on sales returns permitted subject to separate storage, intimation, accounting and duty if processing amounts to manufacture. Returned finished goods must be kept separately and the local excise office immediately intimated; absent officer response within twenty-four hours, goods may be taken for processing. Cenvat credit on these goods may be availed and must be recorded in the Form V register. If the processing does not amount to manufacture, the quantum of Cenvat credit taken at receipt must be adjusted; if processing amounts to manufacture, duty is payable on the transaction value.