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Excise register dealer-procedure to take credit of sales ret

23 May 2012

I am a Registered Dealer under Central Excise.I sold some material to a manufacturer.The Manufacturer returned back some material under its Invoice mentioning 'rejected and returned back' the details of my Invoice No etc.Pl guide me can I take entry of manufacturer Invoice as my purchase and take credit of excise for further passing.OR if there is separate procedure for this type of transaction.

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3 Replies

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 25 May 2012

CENVAT Credit can avail as per Rule 11 invoice. If the manufacturer returned back the goods " as rejected" on the basis of document issued by the manufacturer, you can take CENVAT Credit. There is no separate procedure prescribed under the rule.

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Mallikharjun (Deputy Manager) (304 Points)
Replied 25 May 2012

Procedure is mentioned under Rule 16 of Central Excise Rules. Pls check

UMESH MAHESHWARI (PRACTICE) (59 Points)
Replied 26 May 2012

If I take cenvat credit on the basis of Manufacturee Invoice issued as rejected then please clarify

Manufacturer charge Excise as it was recd to it by my Invoice (Dealer Invoice)which shows excise duty per M.T .In that case assessable value does not tally with Excise Amount (In terms of %).