We had purchased Several machinery invoiced in one bill. There was capital duty on the bill which we have availed. Now one of the machinery is to be sent back. I have reversed a portion pertaining to that materiaal in my books of accounts. The materail is being sent back with a credit not mentioning all the details of rejection and reversal of duty and cst. Also a notorised copy of the original bill and its bilty is sent to the seller.
Is this procedure correct? or we are suppose to send back this materila with our tax invoice.
We are sellers of Miled Steel Products which is under chapter heading 72. and this machinery was under heading 84.
The party is not ready to revers the credit on the Credit note sent by us the party is demanding for Tax Invocie.
Can we issue tax invoice under chapter heading 84?
23 February 2016
You need to issue tax invoice because you have already availed the cenvat. Ensure that you have availed 100% cenvat. Issue an invoice with a remark "Removal Under Rule 3(5)" mentioning all the details required on Excise Invoice. Also put a remark "Rejected & Returned". Reverse the cenvat availed in the Cenvat Register. For CST you can issue separate Credit Note, based on which seller can take set-off.
23 February 2016
When CG recd you must have availed 50%. Now avail Balance 50% and then make Invoice for Rejection. You are allowed to avail 100% if Cap Goods are removed as such within 1 year of its receipt.
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