CHAPTER 18

Miscellaneous Provisions

PART IV

Return of duty paid goods to the factory
1. Return of duty paid goods

1.1 Rule 16 of the said Rules provides for return of any goods, on which duty has beenpaid at the time of removal, to the factory for being re-made, refined, re-conditioned orfor any other reason. In such cases, the assessee shall state the particulars of such returnin his records and shall be entitled to have CENVAT credit of the duty paid as if suchgoods are received as inputs under the CENVAT Credit Rules, 2001 and utilise this creditaccording to the said rules. As per this rule the goods should return to the same factory inwhich they were produced.

1.2 If the goods so returned are subjected to certain process which do not amount tomanufacture, 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 onthe date of removal and on the value determined under Section 4 or Section 4A of theAct, as the case may be.

1.4 In the event the assessee has any difficulty, the Commissioner is empowered toresolve the same and permit the entry of the goods into the factory and the availment ofCENVAT credit thereon. For this the Commissioner, either on case to case basis by specialorder or to be applied to “particular type of case” by general order, impose suchconditions as may be necessary for safeguarding interest of revenue.

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