Procurement of inputs without payment of duty

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Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2012 Notifn 43/2001 CE dt.26.06.2001 prescribes the procedure for procuring inputs without payment of duty required for use in the export goods to be exported.
My question is as per Notifn no. 24/2010 CE (NT) dt.26.05.2010 this facility is available for export goods which is fully exempted from payment of excise duty as per Notifn No.17/2011 dt.01.03.2011.

Experts can you shed some light on this?

U S Sharma

U S Sharma (Expert)
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13 January 2012 notification no 24/2010 CE NT specifies that benefit /procedure of 42/2001 (NT) where the exporter can procure the goods under bond, without payment of duty for further export, will not be applicable for goods which are wholly exempt under tariff.

goods which are wholly exempt can be procured and exported without any formality of notification 42/2001 CE (NT)

U S Sharma

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Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2012 Please understand my question. Procurement of inputs u/n 43/2001 CE NT dt.26.06.2001 used in the manufacture or processing of finished goods which is exempted u/n 17/2011 CE dt.01.03.2011 is permissible in the light of Notification No.24/2010 CE (NT)dt.26.05.2010?

Expers pl advice

Sharmaji Please read the notification 43/2001 CE NT dt.26.06.2001; Regret for the inconvenience;

U S Sharma

U S Sharma (Expert)
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15 January 2012 read carefully the notification no u mentioned, that notification is related to excise duty on footwear

http://www.cbec.gov.in/excise/cx-act/notfns-2k1/ce43-2k1.htm

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2012 Please read the Notification No.43/2001 CE NT dt.26.06.2001;

U S Sharma

U S Sharma (Expert)
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16 January 2012 43/2001 CE NT specifies the procedure for procurement of inputs without payment of duty which are to be cleared for export under notification no 40/2001 CE NT or 42/2001 CE NT ( refer clause vi of notification no 43/2001 CE NT)

when the goods are not covered under 40 or 42 notifications , benefit of 43 notification does not arise.

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2012 Notifn 43/2001 NT specifies the procedure for procurement of inputs without payment of duty for the purpose of use in the manufacture or processing of export goods and their exportation out of India.

Clause vi of notifn 43/2001 NT specifies
the goods shall be exported on the application in Form A.R.E. 2 specified in the Annexure and the procedures specified in Ministry of Finance (Department of Revenue) notification No.40/2001-Central Excise (N.T.) dated 26th June, 2001or in notification No.42/2001-Central Excise dated 26th June, 2001 shall be followed.

There is no list of specific goods appended in Notifns 40/2001 NT or in 42/2001 NT.which alone should be exported to claim the benefit of Notifin 43/2001 NT

Clause vi of Notifn 43/2001 NT talks about only the procedures to be followed.If so where does the question of goods covering under notifns 40 CE NT or 42 CE NT arise?

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U S Sharma

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17 January 2012 when goods are unconditionally free from excise, export under bond does not arise, also procedure of ARE-1/ARE-2 is not maintained, hence duty free procurement is not possible

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2012 Notifn 43/2001 NT is not rescinded. It talks about export of goods. It does not distinguish between excisable goods and non excisable goods. To put it in clear terms the notifn. does not distinguish between dutiable goods and duty exempted goods.

The notifn also states that the goods shall be exported in Form ARE2 (clause vi). It also states that procedures specified in notifn 40/2001 NT or 42/2001 NT shall be followed.
Procedures specified in Notifn 40/2001 NT:
Procedure for export to all countries except Nepal or Bhutan Sealing of goods and examination at place of despatch. - (a) For the sealing of goods intended for export at the place of despatch, the exporter shall present the goods along with four copies of application in the Form ARE-I
(This does not applicable to Notifn 43/2001 NT as it clearly states export should be in Form ARE2.)

Despatch of goods by self-sealing and self-certification

Examination of goods at the place of export. –

Presentation of claim for rebate to Central Excise.-

Claim of rebate by electronic declaration.
Special procedure for store for consumption on board an aircraft on foreign run–

Cancellation of documents

Procedures specified in Notifn 42/2001 CE:

Procedure for removal without payment of duty under this notification: – (a) After furnishing bond, a merchant-exporter shall obtain certificates in Form CT-1 specified in Annexure-III

(The above procedure is not applicable to Notifn 43/2001 NT as the manufacturer has to make the application in Annexure 1 (Refer Rule 3 of CENTRAL EXCISE (REMOVAL OF GOODS AT CONCESSIONAL RATE OF DUTY FOR MANUFACTURE OF EXCISABLE GOODS) RULES, 2001)

Sealing of goods and examination at place of despatch; (a) For the sealing of goods intended for export at the place of despatch, the exporter shall present the goods along with four copies of application in the Form A.R.E.-1 specified in Annexure-IV
(As per Notifn 43/2001 NT) the goods shall be exported in Form ARE2

Despatch of goods by self-sealing and self-certification

Examination of goods at the place of export

Cancellation of applications

Procedure in respect of exported goods subsequently re-imported and returned to the factory

Notifn 42/2001 NT has been amended vide Notifn 24/2010 dt.26.05.2010.

A Notifn should be read as it is.No meaning could be added to it. This is a Supreme Court Ruling. If so why should insert the Notifin 24/2010 NT into Notifn 43/2001 NT?