Master TDS & TCS Provisions with Critical Issues. Register Now!

rejection of goods

saurav chhabra (BUSINESS) (114 Points)

21 October 2010

what is the procedure for rejection of goods(raw material) on arrival due to quality problem whose input credit has not been taken in central excise.

Reply
Follow
Share

5 Replies

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 21 October 2010

you should take the credit of the input arrived in the factory and cleared it as such from the factory gate after reversing the credit taken.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

saurav chhabra (BUSINESS) (114 Points)
Replied 22 October 2010

we have not made any entry of the goods ,as the truck entered in our factory ,we checked the material for quality and due to inferior quality ,rejected the material. Therefore the party is asking us to stamp the tax invoice with our company seal and sign it by writting "goods rejected due to inferior quality" . is this the correct method of doing it.

Suhas Deshmukh (Manager Finance & Accounts) (132 Points)
Replied 22 October 2010

I my view If your company has not inwarded the material in the inventory then the material can be send back on the parties invoice by giving appropriate remark

No other documentation is necessory

1 Like

saurav chhabra (BUSINESS) (114 Points)
Replied 22 October 2010

we have not passed any entries in our store ledger nor in the DSA book or any kind of inward entries,can we reject the material by just stamping and passing the remark on the invoice.please advice

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 28 October 2010

You should made all the entries and cleared the material to your supplier with proper documents(your invoice - cleared as such) with duty (reversal of duty)