Sale Return Isuee

[sukhvinder singh]

Dear Sir,

Plz  Note  that i have sent the excisable finish product 1000 kgs to the party under  excise invoice .But there is some problem in material the party rejected the 600 kgs and sent back to us under my  exciseable invoice , no anyother document has been raised by the party. not even rejection or debited note against sale return.

now plz tell me how i can take credit on it & take the entry in Stock register & under which document i can show the reference.

thanks

[YAGAY and SUN]

You need customer's Invoice in this regard since it is a partial rejection. Insist to get the Invoice from your customer.

[Guru Murthy]

In order to avail back cenvat credit on rejected quantity of 600 Kgs, Your customer has to raise his invoice, citing reason for rejection along with rejection certificate. On the basis of this invocie, you may take entry in Stock Register and you can also avail cenvat credit. In case, the full quantity is rejected, the customer may return your own cenvat copy,, on which you can avail cenvat credit, Since it is a partial rejection, you have to insist for customer's invoice.

AI Summary

Cenvat credit on sale returns requires buyer's invoice and rejection certificate before stock and credit entries can be made. When a buyer rejects part of an excisable consignment, the supplier may record the returned quantity in stock and avail cenvat credit only after the buyer issues an invoice stating the rejection reason together with a rejection certificate; if the entire consignment is returned, the buyer may return the supplier's excise copy enabling reinstatement of cenvat credit, but partial rejections require the buyer's invoice and rejection certificate.