How can we square the transactions and get back the BCD and SWS paid to the government? Under what documents should the DTA party return the goods?
Firstly, you can give a credit note to the DTA party and square the transaction. Next, the DTA party can send back the rejected goods under a delivery challan. Third, you can receive the goods and treat the inputs on the goods as duty paid, so that when you reprocess or repair the rejected goods and supply again to the same or another party in DTA, you need not pay any BCD or SWS. Of course, if you export the repaired or reprocessed goods, you can claim drawback of the BCD and SWS paid on the inputs through brand rate.
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