Excisable material returns

This query is : Resolved

manisha (Querist)
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04 February 2017 Sir,
We are manufacturing company under excisable goods (Maharashtra). we raised the bill in the month 27.07.2016 and it was rejected and party issue debit note for the same dt. 30.07.2016 but the debit note received by us in the month of jan, 2017.
1. Shall we can taken the cenvat credit for the same in the month of Jan,2017 or not.?
2. Same material we repair and resell the to same party, Shall we have to raised fresh Invoice for the same ?
3. How to Inform Excise department for the same.(Pls provide me the draft letter)

Kindly revert on the same.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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06 February 2017 You can take the cenvat credit on the basis of debit note issue by the buyer. At the time of repaired goods sale you need to pay duty. No need to intimated to the department on returned goods received by you.

manisha

manisha (Querist)
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18 February 2017 But Sir our Excise Consultant say we have intimate department within 48 hour after material rejected and then you will be eligible for cenvat credit. In our case our material rejected in the month of july,2016 but Intimation received from party in the month of Jan,2017 through email debit note dt. 31.07.2017. In this case also we can claim cenvat credit for the same.

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Arun Kumar Singh

Arun Kumar Singh (Expert)
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18 February 2017 You are required to maintain proper account for receipt and disposal of the returned goods on the grounds of being re-made, refined, re-conditioned or for any other reason. Therefore it is clear that you need not send any intimation regarding receipt of the returned goods.