Sales return - cenvat credit

[venkat eswaran]

Sir,

is there any time limit for taking cenvat credit [ reversal of duty pmt]  for Sales return goods?  In case he is trader or not excise registered dealer on what document basis we can rerverse the excise duty?

kinly help me on this

venkateswaran

[YAGAY and SUN]

Traders don't avail the CENVAT credit but they do pass on the Credit.  If the rejection is received at your end from your customer then it may be treated as deemed purchase and after rectifying the defect you can again sell the goods while passing on the CENVT credit to another customer.

[Vijay kumar]

No time limit has been prescribed for taking cenvat credit on the returned goods. However, in view of the provisions of Rule 16 of the Central Excise Rule, 2002, credit may be taken before the clearance of reprocessed goods. In case of trader, the original duty paid document is the proper document to take credit.

[Sunil Ahuja]

No time limt is prescribed. Rule 16 of Central Excise Rule, 2002 will apply here. If goods are returned in original packed condition alongwith original invoice then credit can be availed on such document.

AI Summary

CENVAT credit on sales returns is allowable where applicable rules and original duty documents or invoices are produced.
CENVAT credit on returned goods can be availed without a specific time limit subject to compliance with the applicable central excise procedural rule; credit may be taken before clearance of reprocessed goods. Traders do not avail credit but pass it on; the original duty paid document, original invoice and original packed condition of goods are the primary documentary evidences required to take or reverse CENVAT on sales returns.