Goods returned, Central Excise

[gopal rao]

Dear Sir,due to material rejection We get goods back on our invoice. Shall we take cenvat credit on our own Invoice? pls. guide

Posts / Replies

[Pradeep Khatri]

Dear Gopal,

Yes, you may avail the CENVAT credit on you own Invoice.  Please also check Rule 16 of the Central Excise Rules, 2002 in this regard.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

[Naveed S]

Yes, provided the process to which such rejected goods are subjected before being removed again does amount to manufacture, as explained under sub rule (2) of rule 16 of central excise rules, 2002, and as discussed above by Pradeep Sir.