sales return, Central Excise

[jyotish diwedi]

Dear Sir

We have need how to treat sales return in books of excise and what record maintained

Pl explain me.

Posts / Replies

[Naveed S]

 

(i) The assessee is entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2004. Credit may be availed on the duplicate copy ( even on triplicate copy available with the assessee) of the invoice under which the goods were originally cleared from factory and received with the returned goods or on the copy of invoice issued by the consignee at time of return of goods. From excise point of view, there shall be entries in the Cenvatable input register and Cenvatable credit register i.e. RG23A Part I and II register.

(ii) In case where the process does not amount to manufacture the assessee should reverse CENVAT credit availed on the said goods and in situation where the inputs have under gone some process e.g. fabrication etc. or any process amounts to manufacture or involving any value addition, duty liability has to be discharged on value determined in accordance with Section 4.

(iii) The private records maintained by the assessee should show the details of such goods :-

(1) S. No. (2) Name, Address, ECC No. of manufacturing factory (3) Details of duty paying documents (4) Description, Quantity of goods received (5) Identification marks (6) name, Address, ECC No. if any of the person/unit from whom goods are received (7) Purpose for which received (8) Process carried out (9) whether any excisable goods are used in repairs / replacements (10) Duty paid on such additions / replacements (11) CENVAT credit availed on the returned goods (12) CENVAT credit reversed (13) Details of invoice of clearance (14) quantity and description of goods re-cleared. Separate account for disposal of replaced part should be maintained.(15) Ledger showing details relating to credit/debit entries for sales return/re-cleared. -

Also refer rule 16 of the Central Excise Rules, 2002.

[jyotish diwedi]

received sales return goods can sales below amount of duty as per excise

[Naveed S]

sales returned goods can be resold at below the price compared to the price at the time of return of sales goods; provided any manufacturing process is carried on such returned goods.

also Refer para (ii) above.