07 January 2009
We are importing our RM for Mfg purpose. And finish good are sale in india as well as export. We take CENVAT credit of CVD + Cess on CVD and Additional duty.
Now, we have excess RM and we are planning to export same RM to our inter company. So please advice and how to process.
Can we go for claim Drawback or rebate clime?
If yes, what would happen to the credit we have taken in register?
Custom Authority is asking for a certificate from Central Excise authority stating that No Cenvat credit is taken for the items being exported.
15 January 2009
If you claim rebate, you will loose benefit of basic custom duty. Thus you will rquire to claim drawback under Section 74. Whether drawbak of only basic custm duty can be claimed under Section 74 is a doubtful point. Thus you will be required to reverse the cenvat credit when the RM is removed from the factory as such, take a cretificate from the excise authorities and claim drawback.
CAclubindia
