Cenvat credit allowable or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2015 Material sent to customer alogwith excise sale invoice. but customer return the same material alongwith our original sale invoice. so in this stuation , cenvat credit is allowable or not. if allowable , what is the procedure to take cenvat credit in our excise book.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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31 July 2015 You can take cenvat if any duty paid goods returned to factory on the basis customer invoice / even basing on your own invoice.

Make the entries in daily stock account/ other register maintained in this regard and cenvat register accordingly and at the time of removal of the same goods , you are required to reverse the cenvat at rate applicable on the date of removal.

If you have done further process of returned goods which amount to manufacture , need to pay the duty as normal removal.

See Rule No. 16