Whether Adjustment of Central Excise Duty paid @1% can be done if the jewellery is returned, Central Excise

[Anish Goyal]

A manufacturer cleared a jewellery set on 05.03.2016 on payment of Central Excise Duty @ 1%. However, on 18.03.2016, the same is returned back by the customer.

Now, can I adjust the 1% central Excise duty already paid on jewellery subsequent sales?

Posts / Replies

[KASTURI SETHI]

On what grounds the jewellery was returned ? Either Rule 16 (1) or (2) or (3) of CE Rules, 2002 is to be followed depending upon the requirement.

[Ganeshan Kalyani]

I agree with the views submitted by Sri Kasturi Sir. Rule 16 of Central Excise Rules deals with the returned goods and its excise duty implications.