Warranty Claim

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..... Warranty Claim
Query (Issue) Started By: - RAJENDRA KHOMNE Dated:- 20-1-2016 Last Reply Date:- 22-1-2016 Central Excise
Got 6 Replies
Central Excise
Sir, In Sale against warranty claim, Excise duty is applicable or not. We are selling material under warranty, if customer returned material to us against warranty and at the time of replacement of this material can excise duty applicab .....

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..... le? Pl guide. Thanks, Khomne R. M. Reply By Ganeshan Kalyani: The Reply: Excise duty is applicable on removal of goods, warranty is your agreement with your customer. Reply By Rajagopalan Ranganathan: The Reply: Sir, If you replace the defective material returned by your customer with new one you have to pay duty on the new material. Under rule 16 of Central Excise Rules, 2002 you can take cr .....

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..... edit of duty paid on the returned material and use the same for payment of duty on returned material when it is cleared after repair etc. If you scrap the returned material then you can pay duty on the scrapped material using the credit taken, if it is leviable as per first schedule of Central Excise Tariff Act, 1985. If the scrap is non-excisable then you have to reverse the credit taken when you .....

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..... clear the scrap under your commercial invoice. Reply By KASTURI SETHI: The Reply: The warranty is your headache. I agree with both the experts. Reply By RAJENDRA KHOMNE: The Reply: Thanks Sir Reply By Mahir S: The Reply: Sir, Further to add that, Cost of packing, to and fro freight, delivery and transportation charges, etc, if any, collected from the buyer at the time of clearance of such .....

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..... replaced goods shall also be added to the assessable value, and duty required to be paid thereon. Reply By Ganeshan Kalyani: The Reply: I want to add a point to the discussion to get your feedback that the FG was removed with payment duty. The rejected material was returned by customer due to some reason. The said material was nearing expiry date. When it is received back in the factory it has c .....

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..... rossed expiry date. Now whether as per 16 of CER, 2002 the credit can be taken or the credit is disallowed only because the FG is beyond expiry date. Please discuss.
Discussion Forum - Knowledge Sharing .....

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