19 November 2015
Merchant exporter is exporting goods manufactured by supplier using indigenous inputs availing cenvat credit. Export is done against CT-1 bond issued by merchant exporter. Merchant exporter is getting All Industry duty drawback Rate List benefit. Manufacturer supplier is claiming Refund against input cenvat credit taken under Rule 5 of the cenvat credit rules 2004 from excise Excise is saying as per rule 5 no refund shall be sanctioned if export under drawback, as shipping bill seems drawback shipping bill But manufacturer has purchased goods ingenuously and wants to claim cenvat credit taken to be refunded no local sales are being done by him excise wants manufacturer to clarify the above point for granting refund Please clarify asap thanks
25 November 2015
only one INCENTIVE admissible either Duty DRAWBACK or CENVAT.
Further note that :
Exports executed through Third Parties is also eligible for Refund Under Rule 5 of CCR provided your company's name is mentioned on copy of Shipping Bill as Supporting Manufacturer. Important is Inputs used in the export of goods and furthermore the said Rule does not speaks of Exports executed by Manufacturer Exporters only.
Please go through following citations in erstwhile Modvat Rules, wherein CESTAT has held that Refund of accumulated CENVAT admissible even if the goods are exported through Merchant Exporters.
CAclubindia
