Credit of Excise duty on Export

This query is : Resolved

pramod (Querist)
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02 January 2010 A is manufacturer who sell the goods to B who is trader passing excise duty then B trader sell it to C who is Exporter. Whether C can take credit of Excise duty?

If C is also a trader and sold it to D who exports the Same. Whether D can take Credit of Excise duty?

2nd Query
Nuts and bolts which are used in electricity structures to join steel rods whether we can take credit on nuts and bolts. Company is infrastrucsture company.

SANJAY JAIN

SANJAY JAIN (Expert)
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04 January 2010 As the duty is paid by the manufacturer of excisable goods and conceptually the trader only passes on the CENVAT credit amount to the purchaser. In CENVAT credit provisions, the pass on up to only 2 stages is allowed. Means II stage dealer is the last person to take credit and pass on equivalent amount. If the II stage dealer further sells the goods to a trader(X), in turn X would not be entitled to take credit and further pass on. But II stage dealer sells the goods to the manufacturer, the manufacturer would be entitled to take credit.

Now in between any trader wants to export, the corresponding CENVAT credit amount would lapsed. But the trader wants refund of credit, he may move goods directly to the port for export and on after exporting under the Rule 18, he can claim rebate of duty.

Otherwise the duty burden shall be reimbursed in the duty drawback rates.

For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).