Cenvat on returned goods
YASHPAL RAWAT
(Querist) 20 July 2016
This query is : Resolved
Kindly suggest if Duty paid Sold goods are returned with original invoice to factory which are not amounting to reprocess or manufacturing so what is procedure in respect of following
1. How to take Cenvet credit
2. If goods are returned after 6 month so Cenvat can be taken
3. Need to show in RG or maintain separate register
4. How to show in ER1
ramesh
(Expert) 21 July 2016
The fact remains that it is not possible to have a proper duty paying document showing the manufacturer as consignee in case of duty paid goods brought to the factory under Rule 16. Further the rule does not mention anything about duty paying documents; it only says that credit can be taken as if such goods are received as inputs and it no where mentions that the procedure under the Cenvat Credit Rules has to be followed for taking credit. The requirement of following the procedure is only in respect of utilization of the credit, not for taking that credit. This must have been a consciously framed rule as it is not practically feasible to always produce a duty paying document in case of returned goods.
YASHPAL RAWAT
(Querist) 22 July 2016
What records we have to maintain and can we take cenvat if goods are recd after 6 months and need to show in ER1.
what is procedure according to rule 16 for duty paid returned goods does not amounting to reprocess or re manufacturing.
ramesh
(Expert) 22 July 2016
As per the Rule 16 of Central Excise Rules, 2002, you are entitled to take the CENVAT Credit of the duty paid as if such goods are received as inputs. Further, to avail CENVAT Credit (re-credit) of this returned goods, the Excise Invoice you have sent originally is enough, when it has been properly endorsed by your customer.
However, as mentioned by you and as per the latest notification no.21/2014-CE dt.11th July 2014, CENVAT Credit of Inputs and Input services are not eligible beyond six months from the date of issue.
It is also not clear whether your customer has availed any CENVAT credit.
Your case can be referred to TRU as there are no legal scripts to give you relief, though you are logically eligible for relief.
You may write to concerned authorities for relief.
