Excise duty on capital goods used for manufacture of export

This query is : Resolved

Guest

Guest (Querist)

15 May 2013 can one get refund of the excise duty paid on capital goods purchased which are inturn to be used in the manufacture of the goods which are to be exported?

If yes, Kindly let me know the procedure.

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)
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16 May 2013 THERE IS A SYSTEM TO PROCURE CAPITAL GOODS WITHOUT PAYMENT OF DUTY UNDER E.P.C.G. LICENCE, IF IT IS USED IN THE MANUFACTURE OF GOODS TO BE EXPORTED.

SECOND SYSTEM IS TO TAKE CENVAT CREDIT ON EXCISE DUTY PAID ON CAPITAL GOODS, THEN TO REMOVE THEIR FINISHED GOODS FOR EXPORT AFTER PAYMENT DUTY UNDER THE SCHEME OF REBATE CLAIM, THEN THEY CAN GET REFUND (REBATE) OF DUTY AGAINST DUTY PAID ON EXPORTED GOODS.

THE WHOLE PROCEDURE IS DEFINED IN RULE 18 OF C.E.RULES, 2002 AND NOTIFICATION 19/2004-CE (NT) DTD. 06.09.2004.

THANKS.
Please click on "Thank User", if you are satisfied with my reply.
Rajeev Kumar Garg
(M.Com, L.L.B.)
Consultant (Excise, Customs & Service Tax)

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Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)
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Guest

Guest (Querist)

16 May 2013 Thank you sir,
Explanation provided by you is very helpful. i would like to further know that in case of duty drawback (i.e. purchase of capital goods with payment of excise duty) and further get it refund on export obligation of around 6 years 6 times.
What are the documents required to be submitted to director general of foreign trade to claim duty draw back and get invalidation letter from authority.

Guest

Guest (Querist)