what is the processor to account for Sales Returns after surrendering the R.C., Central Excise

[Srivatsan Krishnamachari]

Query:  A company registered under  Companies Act, 1956, has two manufacturing units (Unit A in the state of A.P & Unit B in the state of U.P) having separate Central Excise Registrations. Unit B (U.P) dispatched some materials (required duty duly paid) to a party, but the party rejected those materials and those materials are in the custody of the transporter to whom the said Company has to clear his bills and he refuses to part away with the materials till his dues are cleared. In the meantime the Company has closed its Unit B (U.P) and the Factory Buildings old to a third party. All the stocks including finished materials have been cleared paying duty before the Factory Building was sold.

Now the Company wants to clear the transporter’s dues and take back those rejected materials dispatched from the Unit B (U.P) to its Unit A (A.P) since the Unit B (U.P) no longer exists. Is the Company permitted to get back those rejected materials to its Unit A (A.P) if so what are all the documents required to accompany the Consignment. Can the Company reverse the duty paid earlier on those rejected materials and take credit in its books pertaining to its Unit A (A.P?)

Kindly clarify our query.

Posts / Replies

[palaniappan thirukalathiappan]

 

 

Credit can not be availed at AP unit,  since the material being despatched from UP unit.