rejected goods, Central Excise

[shaji thomas]

What is the procedure to take the re-credit on rejected goods initially cleraed by paying  PLA duty (1% newly introduced duty)

Posts / Replies

[pradeep khatri]

Kindly refer Rule 16 of the Central Excise Rules, 2002 in this regard.

[shaji thomas]

In the instant issue taking Cenvat credit on the rejected goods is not possible as the duty payment is only through PLA and not availing Cenvat credit on inputs( Notn No.1/2011-CE dated 1-3-2011, Effective rate of duty 1% on certain items on which exemption has been withdrawn, without availing Cenvat credit)

[NEETA SHETE]

As per provisions of Cenvat Credit Rules 2004, CENVAT credit of such duty of excise shall not be allowed to be taken when paid on any goods in respect of which the benefit of an exemption under notification No. 1/2011-C.E., dated the 1st March, 2011 is availed.