04 April 2010
Dear Sir, we are the suppliers of auto parts to a party located in special economic zone who is claiming exemption from excise duty, Sir if we can remove our supplies to the party without payment of excise duty if yes under what provisions of the excise laws. We removed certain supplies after payment of excise duty for which our customer has not taken cenvat credit of that amount. In relation to that supplies a debit notes were issued by the customer for rate decrease in which excise duties are also included. Now the problem with us is that we have paid duty charged in the original invoice. but we can take cenvat of duties included in debit notes for rate decrease. Please advice 1. can we take cenvat credit of excise duties included in debit notes 2. if yes then there is no problem. 3. if no what are the remedies for us 4. if you say we can claim refund of that duty from excise department that is a very cumbersome task and the possibility of issue of refund is very remote almost negligible. 5. Please advice us the other remedies
06 April 2010
Too many issues mixed up in one. SEZ removals are under special procedures and supplies tobe backed up by documentation. For excisable removals where there is a price decrease the only otpion is refund to be applied for within 1 year., Normally refund is an administrative nightmare and unless amounts are substantial better to forget it. No recredit procedure exists.
CAclubindia
