Export bill

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Zafarulla Sattar Khan (Querist)
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07 October 2013 XYZ is intend to Sale goods to Foreign.
He will raise the Invoice to Importer and dispatch the goods in India. My Question is: 1.what is the treatment of Excise Duty. in account of XYZ.
2. It is possible to do this type of Trade.

Please suggest...

Arun Kumar Singh

Arun Kumar Singh (Expert)
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09 October 2013 If goods is exported then two procedure is available without payment of duty under rule 19 and with payment of duty and rebate after payment of duty under rule 18 of central excise rules 2002.

Zafarulla Sattar Khan

Zafarulla Sattar Khan (Querist)
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11 February 2014 Sir thanks for your answer, could you please elaborate that without payment of duty under rule 19 ?

we are paying excise duty on purchase and exporting these goods , whether can claim that excise duty as Refund ?

Pls do the needful
Thanks.

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Zafarulla Sattar Khan

Zafarulla Sattar Khan (Querist)
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Zafarulla Sattar Khan

Zafarulla Sattar Khan (Querist)
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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 In the scenario you've described where XYZ intends to sell goods to a foreign importer and export them from India, here’s how excise duty and the process generally work:

1. **Treatment of Excise Duty for XYZ:**
- **Export without payment of duty under Rule 19:** Under Rule 19 of the Central Excise Rules, 2002, when goods are intended for export, they can be removed from the factory without payment of excise duty, subject to certain conditions.
- XYZ, as the manufacturer or seller, would typically clear the goods for export under bond or claim refund of excise duty paid on inputs used in the manufacture of exported goods.

2. **Process of Exporting Goods:**
- **Invoice to Importer:** XYZ will raise an invoice to the foreign importer, which will include the cost of goods plus applicable taxes and duties (if any).
- **Export Documentation:** XYZ needs to prepare export documentation such as shipping bills, bill of lading/airway bill, and other required export documents.
- **Excise Duty Exemption (Rule 19):** To export goods without payment of excise duty, XYZ needs to follow the procedure under Rule 19, which involves:
- Filing of a bond or letter of undertaking (LUT) with the excise authorities.
- Removal of goods from the factory premises under specified conditions.
- Compliance with export procedures and customs clearance formalities.
- **Claiming Refund of Excise Duty:** Alternatively, XYZ can claim refund of excise duty paid on inputs used in the manufacture of exported goods under the provisions of Central Excise Rules, 2002. This typically involves filing a refund claim with the excise authorities supported by relevant documents and proofs of export.

3. **Eligibility for Refund of Excise Duty:**
- XYZ can claim refund of excise duty paid on inputs used in manufacturing goods that are subsequently exported. This is governed by the provisions of Central Excise Rules, 2002.
- Conditions such as timely filing of refund claims, submission of necessary documents, and compliance with procedural requirements need to be met to qualify for the refund.

4. **Documentation and Compliance:**
- Ensure all export-related documents are correctly prepared and submitted to customs and excise authorities.
- Maintain proper records of export invoices, shipping documents, proof of export, and excise duty payments/refund claims.

In summary, XYZ can export goods to a foreign importer without payment of excise duty under Rule 19 of the Central Excise Rules, 2002, provided the necessary conditions are met. XYZ can also claim refund of excise duty paid on inputs used in the manufacture of exported goods by following the prescribed procedure for refund under Central Excise Rules. It’s advisable to consult with a tax advisor or excise consultant to ensure compliance with all regulatory requirements and maximize benefits under excise laws related to exports.