Excise Sales Return in same month, Central Excise

[Mathurthi RamKumar]

Dear all,

One of the sales invoice return by party along with original documents (Invoice date and returned in same month i.e May 2015). Kindly advise how to shown this transaction in ER1.

Regards

M.RamKumar

Posts / Replies

[Mehul Pandya]

Duty paid goods if returned by the customer should be stored separately and entry of the same should be done in separate register. You can mentioned the same in Remark option in ER-1.

You can avail cenvat credit on the base of original documents. for more detail you can refer Rule -16 as under

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 a 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 ¹[Principal Commissioner or Commissioner, as the case may be].

Retrospective Amendment by Section 39 of Taxation Laws (Amendment) Act, 2006 (29 of 2006)

Amendment of rule 16 of the Central Excise Rules, 2002.

39. (1) IN the Central Excise Rules, 2002, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise At, rule 16 thereof as published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue), No. G.S.R. 143(E), dated the 1st March, 2002 shall stand amended and shall be deemed to have been amended retrospectively in the manner is specified in column (2) of the Schedule for the period specified in column (3) of that Schedule against the rule specified in column (1) of that Schedule.

(2) Notwithstanding anything contained in any judgment, decreed or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 29th day of May, 2003 and ending with the 8th day of July, 2004 under the rule as amended by sub-section (1), shall be deemed to be and always to have been, for all the purpose, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times.

(3) For the purpose of sub-section (1), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as If the Central Government had the power to make rules under section 37 of the Central Excise Act, retrospectively, at all material times.

Explanation. - For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence, which would not have been so punishable if this section had not come into force.

THE SCHEDULE

(See section 39)

Provisions of the Central Excise Rules, 2002 to be amended	Amendment	Period of effect of amended
1	2	3
Rule 16 of the Central Excise Rules, 2002 as published vide notification No. G.S.R 143(E), dated the March 1, 2002	In the Central Excise Rules, 2002, in rule 16, after sub-rule (3), the following provisos shall be inserted, namely: -	29th day of May, 2003 to 8th day of July, 2004 (both days inclusive)
	'Provided that for the purposes of this rule, "assessee" shall include wire drawing unit, which has cleared the goods on payment of an amount equal to the duty at the rate applicable to drawn wire on the date of removal and on the value determined under relevant provisions of the Act and the rule made thereunder :
	Provided further that the amount paid under the first shall be allowed as CENVAT credit as if it was duty paid by the assessee who removes the goods.'

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Notes:-

1. Substituted vide Not. 23/2014 - Dated 6-8-2014.