Cenvat Credit on line Rjection Material

This query is : Resolved

Rajinder Ahuja (Querist)
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02 January 2010 I HAVE SOLD SOME MATERIAL TO MY CUSTOMER FOR 100000/- AND WHILE PROCESSING ON THE MATERIAL THEY REJECTED THE MATERIAL AND SEND IT BACK TO US ON SALE INVOICE MENTIONING LINE REJECTION.AFTER CHARGING EXICSE DUTY

PLEASE TELL ME CAN I TAKE CENVAT CREDIT ON LINE REJECTION MATERIAL

ANIL JANGID

ANIL JANGID (Expert)
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02 January 2010 YES YOU CAN TAKE CENAVT.

Rajinder Ahuja

Rajinder Ahuja (Querist)
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02 January 2010 Thaks mr. Anil

is there any case study which shows that cenvat credit can be taken on the material which is recived as line rejection

because our Excise audit team has denied for this credit and disallow all the credit and they have charged the interest also

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ANIL JANGID

ANIL JANGID (Expert)
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02 January 2010 but goods should be under cover of excise invoice then you can take cenvat credit.

Rajinder Ahuja

Rajinder Ahuja (Querist)
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02 January 2010 Yes, goods are covered under excise invoice

ANIL JANGID

ANIL JANGID (Expert)
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02 January 2010 Excise audit team has denied for this credit and disallow all the credit and they have charged the interest also so
Please give detail under which rule they disallow of credit and charging intrest?