rejected goods

[shaji thomas]

What is the procedure to take the re-credit on rejected goods initially cleraed by paying  PLA duty (1% newly introduced duty)

[YAGAY and SUN]

Kindly refer Rule 16 of the Central Excise Rules, 2002 in this regard.

[shaji thomas]

In the instant issue taking Cenvat credit on the rejected goods is not possible as the duty payment is only through PLA and not availing Cenvat credit on inputs( Notn No.1/2011-CE dated 1-3-2011, Effective rate of duty 1% on certain items on which exemption has been withdrawn, without availing Cenvat credit)

[NK SHETE]

As per provisions of Cenvat Credit Rules 2004, CENVAT credit of such duty of excise shall not be allowed to be taken when paid on any goods in respect of which the benefit of an exemption under notification No. 1/2011-C.E., dated the 1st March, 2011 is availed.

AI Summary

Cenvat credit restriction: duty paid into PLA under exemption withdrawal is not eligible for credit on rejected goods.
Cenvat credit cannot be taken on goods for which duty was paid through a Personal Ledger Account when the benefit of an exemption withdrawal notification has been availed; payment via PLA under that measure precludes recredit of the excise duty, consistent with the procedural rule governing recredit under the Cenvat credit regime.