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TMI BlogSales Return with respect to Central Excise (for Dealer)X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, I am a Excise dealer and sold material through excise invoice (First stage dealer), Now my part material is rejected by customer (he is also dealer) and he will return the material (part material). In this stage how can he return the material. (we dont want second stage dealer invoice from him) Please suggest - Reply By Rajagopalan Ranganathan - The Reply = Sir, If the goods supplied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by dealer are rejected by the customer, these can be resold under fresh invoice. the dealer should approach jurisdictional Range Superintendent with original cenvatable documents issued in the name of first customer. The Range Superintendent will cancel the same and allow dealer to issue fresh cenvatable invoice in the name of another customer. The entry made in R.G. 23 D Register relating to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he invoice issued to the first customer shall be cancelled (Authority: Pune Commissionerate Trade Notice No. 18/97 dated 11.2.1997). These instruction still hold good till the instructions are withdrawn. However I have my own doubt whether officers in the jurisdiction of other Commissionerates will accept this instruction. This is in respect of full consignment rejected. If part consignment is rej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected then you approach your jurisdiction Range Officer to find out a solution. - Reply By KASTURI SETHI - The Reply = Only intimation to the Range Officer is sufficient. Accountal should be proper. Records should be proper. Books of accounts must show return of goods and redespatch of same. - Reply By Rajagopalan Ranganathan - The Reply = Dear Kasturi Sir, If the customer is manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then if he returns the goods either wholly or partly he can do so under his invoice and the dealer can take back the credit in R.G. 23 D Register. If the customer is either a first stage or second stage dealer how the dealer who is receiving the rejected goods can take the credit because while returning the goods can the dealer issue a cenvatable invoice to another dealer. This is question the q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uriest wants an answer. I feel there is no remedy either under Cenvat Credit Rules, 2004 or Central Excise Rules, 2002. - Reply By KASTURI SETHI - The Reply = Sir, Credit reversed is equal to not taking credit taken . Moreover, Registered dealer is just to pass on credit to their buyer. He is not to exceed the quantum of credit recorded in the register. There is no valuation issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , no manufacturing, nothing like availing and utilizing credit. No risk of revenue loss, if proper accountal is made. Invoice should not be fake. Credit reversed is equal to not taking credit taken - Reply By KASTURI SETHI - The Reply = Cancelled bill and intimation to Range Officer with original and duplicate copies of invoice implies auto reversal of credit passed on which was not actually ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed on to the buyer due to rejection of goods. Trade Notice is based on Board's Circulars and Board's circulars have no statutory force at all. Should the registered dealer be allowed to suffer on the ground that there is no remedy in this aspect ? Basic fundamental is that the dealer has paid CE duty and he has proper stock of duty paid goods. Stock of duty paid goods should always ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly with quantum of credit lying in his RG-23 D register . When stock tallies with the balance of cenvat credit, no body can deny credit on any ground. Dealer cannot be made victim of procedures causing monetary loss without any fault of his. Rules/procedures have been framed for the welfare of the public and not for harassment. There should be no fraud like non-existence of dealer or buyer or fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke invoice etc. There is a plethora of judgements various courts wherein it has been held that credit reversed amounts to credit not taken. Returned goods mean credit was not passed on to the buyer by the dealer. Hence intimation to the department is sufficient. There is no utilization of credit by the dealer. Being dealer, he cannot utilize credit but can only pass subject to proper accountal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of stock viz-a-viz cenvat credit. 2011 (266) E.L.T. 41 (Guj.) = 2010 (12) TMI 389 - GUJARAT HIGH COURT COMMISSIONER OF C. EX. CUS., VADODARA-II Versus DYNAFLEX PVT. LTD. - Sales Return with respect to Central Excise (for Dealer) - Query Started By: - nihal maner Dated:- 1-4-2017 Central Excise - Got 5 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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