Rebate of duty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2013 can a manufacturer claim rebate of duty paid on as such removal ofgoods on export.l.e. goods are exported but tgey are not manufactured in the factory. they are imported and then exported

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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24 August 2013 The benefit in respect of duties on inputs used in the manufacture of goods meant to be exported as well as in respect of duty on the finished goods exported is envisaged under the Central Excise law. These benefits are available either in the form of rebate or the clearances of such inputs or finished goods under bond. The scheme under which the benefits are made available, is incorporated in Rule 12 and Rule 13 of the Central Excise Rules, 1944. The benefit in respect of duties on inputs used in the manufacture of goods exported, is available if the exporter does not claim drawback under the Central Excise Duties Drawback Rules, 1995. The rebate of duty in respect of inputs is also not available if the credit of duty paid on inputs has been availed of.

Under Rule 12 of the Central Excise Rules, 1944, rebate on duty paid on the exported goods or the duty paid on materials used in the exported goods, notified for the purpose, is granted to the exporter subject to the conditions laid down in the notifications.

CBEC NOTIFICATION NO. 41/94-CE(NT) dated 22.9.94 (as amended)

SUBJECT:Notified excisable goods for grant of rebate.

CBEC NOTIFICATION NO.42/94-CE(NT) dated 22.9.94 (as amended)

SUBJECT:Notified material used in the manufacture of exported goods for grant of rebate.

43/94-CE(NT) dated 22.9.94 (as amended)

Grant of rebate on castor oil and ground nut oil exported without observing AR-4 procedure.

CBEC NOTIFICATION NO. 44/94-CE(NT) dated 22.9.94 (as amended)

SUB: Rebate of duty on excisable goods exported as ship’s store

CBEC NOTIFICATION NO.46/94-CE(NT) dated 22.9.94 (as amended)

SUB:Rebate of excise duty paid on mineral oil products exported as stores to Aircraft on a foreign run.

Export of goods under bond without payment of duty.

Under Rule 13, the following operations with regard to export are permissible :- (I) export of excisable goods under bond ; (ii) utilisation of raw materials, consumables, components etc. without payment of duty for the manufacture of export goods and (iii) removal of excisable goods without payment of duty for the manufacture of specified excisable goods to be exported or for replenishment of duty paid materials used in the manufacture of such export goods, already exported. The Central Govt. has notified the excisable goods and materials to be used in the manufacture of excisable goods to be exported, as per the notifications listed below:-

50. Notification no. 47/94-CE (NT) dated 22.9.94 (as amended) (exemption to inputs for manufacture in bond);

51. Notification no. 48/94-CE (NT) dated 22.9.94 (as amended) (export in bond of all excisable goods);

52. Notification no. 49/94-CE(NT) dated 22.9.94 (as amended) (movement of intermediate goods without payment of duty for supply to manufacturers of export goods in terms of advance intermediate licence scheme).

The assessee’s desirous exporting excisable goods under bond are required to execute B-1(General Security/Surety) or B-16 (General Security/Surety) bond under Rule –14 either with the jurisdictional Assistant Commissioner or with the Maritime Commissioner and maintain a running bond account with the Range Superintendent. The goods will be allowed to be cleared for export under bond without payment of duty by debiting the amount of duty in the running bond account. The credit in respect of duty debited is made available on furnishing the proof of export of the goods. The assessee’s desirous of obtaining materials for manufacture of export products or in terms of advance licence under notification no.49/94-CE (NT) dated 22.9.94 as amended, are required to follow the Chapter X procedure.