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TMI BlogRejected Return Goods (Re Sale As Such Or A Waste)X X X X Extracts X X X X X X X X Extracts X X X X ..... Rejected Return Goods (Re Sale As Such Or A Waste) X X X X Extracts X X X X X X X X Extracts X X X X ..... by oil industry and other similar consumer industries. The printed materials generally customer specific where as plain materials for general packaging usable for common customers. We sometimes receive back our sold material to our customers on quality ground or some other reasons. Such material once received are inspected by our QC and depending on the condition of material we take the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g action:- 1) We re- process the returned goods and remove the defect noticed to make it usable for customers. after removing defects we re- sale to the same customer (if customer specific printed material) or similar other customer (if is plain material ) .During re processing we generate some waste material that we sale to some other customers at current market price in a normal course. 2) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... returned material ,once received are taken into stock and we take cenvat credit for the amount excise duty. 3) When it is resold after reprocessing we charge excise duty on its transaction value. We generate some waste material during reprocessing that is also sold to some other customers and excise duty is charged on its sale value.(transaction value) 4) Some of the returned material even afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r re processing are not found suitable to the customers are subsequently sold to some other customers at discounted price. We request you to give your opinion on the following:- 1) Whether excise duty charged by us while re sale of returned goods after reprocessing on its transaction value is in order or not.? Your earliest response on the matter shall be highly appreciated. Reply By SHIVKUMA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R SHARMA: The Reply: Dear Mr.Patel Excise duty charged by you while re sale of returned goods after reprocessing on its transaction value is in order. SHIVKUMAR SHARMA Reply By Ramesh Patel: The Reply: Dear Bharat Patel Mr. Shivkumar Sharma is right. But in my opinion You have to pay excise duty on the basis of cenvat taken on return goods or Excise duty on transaction value after reprocessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng which ever is higher. Reply By SHIVKUMAR SHARMA: The Reply: Dear Mr.Ramesh During reprocess of rejected return goods the production deptt.is declared few waste material out of total material. Your view is applicable only for clearance of waste material generated & not for Fresh material. In this regard please refer rule 16 of central excise. SHIVKUMAR SHARMA Reply By Bharat patel: The Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly:
please tale me weather excise duty reverse or not ?
1-first we received rejected goods and same will be rejected and sale as a waste.
received rejected goods with modvet rs.10000/-
and sale waste with duty rs. 4000/-
so differential 6000/- excise duty to be reverse or not ?
please reply immediate X X X X Extracts X X X X X X X X Extracts X X X X
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