Material return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2009 We have supplier materials to our customer and due to the quality problem the same got rejeated.The customer will be returning back the same with their excise invoice after debiting the duty.This material will be used in our normal production.

Whether we should inform to the department about the returns?

Can we take Cenvat?

Regards,

Ram Avtar Singh

Ram Avtar Singh (Expert)
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06 November 2009 as you have written

"This material will be used in our normal production"

It meens not repairable. so treat as sales return for sales tax purpose.

but take as purchase of raw material for excise purpose. no need to intemate to department for purchase of raw material.

but for sales tax purpose its to be mentioned rejected goods return to paty.

if you will resale this material st it is or after repiar it will sale then its need to intemate to excise department.