08 March 2011
In a gazette notification dated February 10, the Health ministry has banned Nimesulide suspension for pediatric use. Before Gazette notification declared we have cleared this product with paying excise duty to various location of Super Stockiests and Consignment Agents. We have informed to all Super Stockiests and Consignment Agents for return the goods. Can we recover CENVAT credit on returned this goods as per CENVAT CREDIT Rules 16 and can apply for remission of Excise Duty. Please guide.
08 March 2011
In my opinion you can take CENVAT credit
- RULE 16(1) says "Where any goods .......brought to any factory for being re-made, refined, re-conditioned or FOR ANY OTHER REASON, the assessee shall ...... shall be entitled to take CENVAT credit .............",
from the quoted rule there may be any reasons for bringing back the goods to the factory, your case may also one of it.
In above lines confirm the same with your legal advisor also
CAclubindia
