How to treat and resale duty paid goods returned, Central Excise

[Ramesh Patel]

We are mfg of infrastructure products. The contractors after completion of work returns excess material lying at site or part of material supplied due to technical problems. As per Excise we need Excise Invoice to claim cenvat for the same. But this contractor aren't registered under excise. And they can't raised invoice of service tax for goods returned. Pls suggest how to treat this issue. And if we doen't take cenvat on returned goods. How to resale it and how to record it.

Posts / Replies

[Rama Krishana]

Your facts are not complete to provide suitable solution. But, in my view, based on certain assumptions, in the present scenario, it is difficult to claim cenvat credit by you.

[Ramesh Patel]

thank u for reply Mr. Rama Krishan,   I will explain u step by step. a) Material sold to contractor with excise duty b) material return by contractor on rejcetion note c) I am not claiming cenvat for material return by contractor but want to sale it again without excise duty.  Pls give your comment wheather I can sale it or not. If I can sale it what is the procedure to be followed.  As per opinion of late Gunashekheran (Excise expert) we can sale it on simple delivery challan.