12 July 2014
We utilised cenvat credit of BED & Additional duty on custom on input which invoice raised by second stage dealer. This input rejected by our QC for quality parameters so we want to send back the material, please guide us how do we reverse the above credit. Shall we release our sales invoice with mentioning BED and ADC & VAT? Also how shall we show this transaction in excise return ER1?
13 July 2014
YES, YOU WILL HAVE TO ISSUE YOUR EXCISE INVOICE SHOWING "NOT FOR SALE. BILL FOR REJECTED GOODS RETURNED ONLY." FOR VALUE OF THE GOODS MENTIONING BED AND ADDITIONAL DUTY AND VAT (AS CHARGED BY SUPPLIER). YOU WILL SHOW THIS DUTY IN COLUMN "INPUT REMOVED AS SUCH" OF CENVAT UTILISATION CHART OF ER-1. THANKS. R.K. GARG (M.COM. L.L.B.) [CONSULTANT OF CENTRAL EXCISE,CUSTOMS AND SERVICE TAX]
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