cenvat credit, Central Excise

[Anil Jangid]

X party received the goods form our Uttarakhand base customer as a rejection with invoice.This invoice is not under rule of excise,but they had include the excise duty amount in basic rate because during removal from our end the excise duty was charged.Please advice that can x party take the cenvat credit against this transaction.

Posts / Replies

[Ganeshan Kalyani]

Whether party X is a manufacturer or what is the status ?

[Anil Jangid]

x Party Manufacturer

[Ganeshan Kalyani]

X has procured the material from you by paying excise duty charged by you on invoice further he has sold it to your customer from his location as it is by an invoice which is inclusive of excise duty and hence he has not carried out any activity on the said material therefore the credit is not eligible to him on the material being rejected.

[Ganeshan Kalyani]

Mr. Anil ji hope your query is resolved.

[Mahir S]

Sir,

X party cannot take cenvat credit against this transaction.