Amit Abbad (BM) (24 Points)
20 January 2012Dear All,
We are second stage dealer & dealing in exciseable products now i have one query that
We sold some products but they got rejected due to some reason ans we have Udyog exices software where we can make sales return entry but what to make entry in quarterly online excise return? Should we skip that excise invoice number or leave it blank?
Plz help
Jitendra
CA Manoj Sahoo
(Manager-Finance)
(47 Points)
Replied 20 January 2012
Yes,You can cancell the invoice,keep all the invoices in original for your record and intimate the same to the excise authorities attaching the cancelled invoices too.Otherwise, your customer can make as such clearance aftre receipt of goods and you can avail the cenvat credit based on customer invoice and customer can avail the cenvat credit based on your invoice.
Please refer rule 16 of Central Excise Rules,2002 -
RULE 16. Credit of duty on goods brought to the factory. — (1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules.
(2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be.
Explanation. - The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by the manufacturer who removes the goods.
(3) If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reason and may remove the goods subsequently subject to such conditions as may be specified by the Commissioner.
Hope, it clarifies your doubt. Pl revert back if you need more clarifications.
CA Manoj Sahoo
(Manager-Finance)
(47 Points)
Replied 20 January 2012
Yes,You can cancell the invoice,keep all the invoices in original for your record and intimate the same to the excise authorities attaching the cancelled invoices too.Otherwise, your customer can make as such clearance aftre receipt of goods and you can avail the cenvat credit based on customer invoice and customer can avail the cenvat credit based on your invoice.
Please refer rule 16 of Central Excise Rules,2002 -
RULE 16. Credit of duty on goods brought to the factory. — (1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules.
(2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the CENVAT credit taken under sub-rule (1) and in any other case the manufacturer shall pay duty on goods received under sub-rule (1) at the rate applicable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be.
Explanation. - The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by the manufacturer who removes the goods.
(3) If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reason and may remove the goods subsequently subject to such conditions as may be specified by the Commissioner.
Hope, it clarifies your doubt. Pl revert back if you need more clarifications.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 20 January 2012
cancellation of invoices should be reported to R/O within 24 hours of such incident.
if the rejecting party has taken credit of such invoice, then the rejecting party will issue his invoice after reversing duty at his end, and you have to open seperate folio for same in RG23D and maintain the same as 1st stage dealer.
if the rejecting party has not taken credit, then you need documentary evidence that the party has not availed credit on your issued invoice , cancell the same and intimate the same to R/O.
CMA Shilpa Shinde
(COST ACCOUNTANT)
(217 Points)
Replied 01 August 2012
If goods returned in factory are removed as such Without any process which amounts to manufacture
But at sales rate higher or at lower rate than the originally returned goods due to changes in demand of
such goods, still Whether as per rule 16, excise duty payable on such removal shall be the one the Cenvat
credit which was taken at the time of receipt of returned goods?
Won't it may amount to loss of revenue in case sales price at the time of resale of returned goods are more than Originally sold?
CAclubindia
