Sales return in case of excise

This query is : Open

Kapil Matolia (Querist)
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14 March 2011 Dear all,
our unit is availing the facility of Notification No. 29 & 30/2004 therefore exempted unit. Now we sold item to a party with excise billing. Party returned that goods. Now the ques is-
i) Can we demand the excise duty paid?
ii) Can we sold the same goods without any manufacturing to the same party at higher rate? What will be the excise procedure in this case?
Pls reply asap.

Thanks

Prabhat Kumar

Prabhat Kumar (Expert)
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14 March 2011 the movement duty paid goods are return to the factory premises for re-made, re-fined or re-conditioned or for any other reason then you can take credit of the duty paid.
how can you justify the change in the transaction value if you are re-sending the goods to the same party without any value addition.

Kapil Matolia

Kapil Matolia (Querist)
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14 March 2011 Sir since goods returned are in december month. Matter was over at that time.
Now party wants to get same quality material afresh, and we are having the same material returned, at us, surely now it will be sold at current rate which is higher than whatever at that time.
Pls guide.

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