Goods can be removed as such without paying duty

This query is : Resolved

Dipak (Querist)
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15 October 2013 Dear Sir,

We have recd a goods from the party. Polyester Texturised Yarn (5402 3300) which is exempted to the party against Notification no 30/2004.

We have purchase the goods they had not charge excise on such those goods while we want to sell the goods to another party should we have to charge excise or not...????

One person has said me u can clear the goods as Goods removed as such clearance Under Rule 3(5)..
Is it Right?????

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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17 October 2013 Where any input or input service is used in the manufacture of final product which is cleared for export under bond or letter of undertaking, as the case may be, or used in the intermediate product cleared for export, or used in providing output service which is exported, the CENVAT credit in respect of the input or input service so used shall be allowed to be utilized by the manufacturer or provider of output service towards payment of,

(i) duty of excise on any final product cleared for home consumption or for export on payment of duty; or

(ii) service tax on output service, and where for any reason such adjustment is not possible, the manufacturer or the provider of output service shall be allowed refund of such amount subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification:

Provided that no refund of credit shall be allowed if the manufacturer or provider of output service avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims rebate of duty under the Central Excise Rules, 2002, in respect of such duty; or claims rebate of service tax under the Export of Service Rules, 2005 in respect of such tax.

Provided further that no credit of the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act shall be utilised for payment of service tax on any output service.

Explanation: For the purposes of this rule, the words 'output service which is exported' means the output service exported in accordance with the Export of Services Rules, 2005.

(Above rule 5 has been amended vide Notification No. 04/2006 - CE (N.T.), dated 14/03/2006)