PART IV
Return of duty paid goods to the factory
- Return of duty paid goods
1.1 Rule 16 of the said Rules provides for return of any goods, on which
duty has been paid at the time of removal, to the factory for being re-made,
refined, re-conditioned or for any other reason. In such cases, the assessee
shall state the particulars of such return in his records and shall be
entitled to have CENVAT credit of the duty paid as if such goods are
received as inputs under the CENVAT Credit Rules, 2001 and utilise this
credit according to the said rules. As per this rule the goods should return
to the same factory in which they were produced.
1.2 If the goods so returned are subjected to certain process which do not
amount to manufacture, the manufacturer shall pay an amount equal to the
CENVAT credit taken.
1.3 In any other case [where the returned goods are subjected to process(es)
amounting to manufacture] the manufacturer shall pay duty at the rate
applicable on the date of removal and on the value determined under Section
4 or Section 4A of the Act, as the case may be.
1.4 In the event the assessee has any difficulty, the Commissioner is
empowered to resolve the same and permit the entry of the goods into the
factory and the availment of CENVAT credit thereon. For this the
Commissioner, either on case to case basis by special order or to be applied
to "particular type of case" by general order, impose such conditions as may
be necessary for safeguarding interest of revenue.