16 September 2012
Dear Experts, On the following cases goods can be removed without payment of duty. 1. Export Sales 2. Sale to an Special Economic Zone 3. Sale to an Export Merchandizer 4. Sale to 100% Export unit 5. Sale to Free Trade Zone.
I want to know what are the procedures they have to follow such as a)asking permission from the statutory authorities by filing a form during the removal or b4 the removal of goods. If yes what are the forms? b) Whether such permission has to be obtained for every such sale occurs.
Please explain me in detail regarding this, so that i can understand the concept and do the audit.
16 September 2012
duty incident takes place when goods are cleared for home consumption. when the goods are cleared for other than home consumption , viz export direct or through merchant exporter/ SEZ/EOU or any such identity as notified by govt of india, duty is not applicable,
but at the time of clearance who will decide that duty is to be paid or not, or if the goods are removed for one purpose and divered en-route for home consumption, as excise department can not collect the duty from the destination point but it fix the liability to the originating point.
hence the manufacturer has to follow some procedure to remove the goods without payment of duty under cover of ARE-1/2 or 3 as the case may be, under supervision of Range officer,
to cover the duty liability an undertaking is executed with division by manufacturer exporter for other than manufacturer exporter , all other persons has to execute bond for the duty free clearance covering the duty amount applicable and obtain CT-1 before clearance.
CAclubindia
