Rejected goods not ret to factoty - reversal of cenvat

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Rejected goods not ret to factoty - reversal of cenvat
Query (Issue) Started By: - venkat eswaran Dated:- 29-7-2013 Last Reply Date:- 30-7-2013 Central Excise
Got 3 Replies
Central Excise
Dear sir / madam, We have factory at chennai, T.N. and branch office at Delhi. We suuplied goods to customer at Utter Pradesh. This has been rejected and rejected goods were sent to our Delhi branch .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... not coming back to our factory. My question is whether we can reverse the Cenvat Credit and CST amount for the rejected goods or not since it is not coming back to factory Venkat Reply By Naveed S: The Reply: I assume your question is regarding AVAILING of cenvat credit and not REVERSING of cenvat credit for the rejected goods.. Please ckarrify.. Reply By venkat eswaran: The Reply: Naveed S .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ir, U r right it is AVAILING OF CENVAT CREDIT only not reversing the cenvat credit. Venkat Reply By Naveed S: The Reply: Regarding returned/rejected goods, the assessee can avail Cenvat credit either - · On the basis of sender's excise invoice under which he sends the goods to the factory, or · On the basis of manufacturer's own invoice (triplicate copy retained by the manuf .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... acturer earlier) which was raised when the goods were originally cleared. Further Rule 16 applies only when goods are received in the factory (factory does not cover the office of assessee located outside the factory). Hence in your case the Cenvat Credit cannot be availed till the rejected goods are returned back in your factory premises.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X