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cenvat credit of capital goods in case of exporting goods

(Guest)

if a person has paid excise duty on capital good used for producing a good which he exports, then what will be the futher implicatiions .. what are the rules regarding the credit relating to credit of these capital goods... for eg for inputs and input services there is rule 5 of ccr 2004 pertaining to exporting goods

in short what are the rules for cg credit , is their any refund rule , in this case ????

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5 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 11 December 2010

Exports are an important means of earning foreign exchange, therefore they require a considerable importance. The Central Excise Rules, 1944 offer several benefits of substantive nature as well as procedural nature for the export of goods outside India. Details of which are as under

Benefits available in respect of goods exported out of India.

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.

Export under claim for rebate.

Under Rule 12 of the Central Excise Rules, 1944, rebate of 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. The various notifications issued under Rule 12 are as given below

S.No.	Notification NO. & Date	Subject
1.	41/94-CE(NT) dated 22.9.94 (as amended)	Notified excisable goods for grant of rebate
2.	42/94-CE(NT) dated 22.9.94 (as amended)	Notified material used in the manufacture of exported goods for grant of rebate.
3.	43/94-CE(NT) dated 22.9.94 (as amended)	Grant of rebate on castor oil and groundnut oil exported without observing AR-4 procedure.
4.	44/94-CE(NT) dated 22.9.94 (as amended)	Rebate of duty on excisable goods exported as ship’s store
5.	46/94-CE(NT) dated 22.9.94 (as amended)	Rebate of excise duty paid on mineral oil products exported as stores to Aircraft on a foreign run.

The assesses desirous of exporting goods under claim for rebate can clear excisable goods for export or materials for use in the manufacture of excisable goods to be exported on payment of duty either through PLA or through RG-23A pt.-II or RG-23C pt.-II and may subsequently claim the rebate of duty paid, from the jurisdictional Assistant Commissioner or the Maritime Commissioner, as the case may be, in accordance with the provisions of Rule 189 of the Central Excise Rules, 1944.

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(Guest)

what about capital good cenvat ?

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 12 December 2010

RG-23C pt.-II is related to capital goods, and u can pay balance to your export consignment and claim rebate of same, as per the procedure.

CS Kruti Parekh (Company Secretary) (30 Points)
Replied 28 January 2011

Dear Sir,

The procedure you discussed is applicable in case goods are exported under rebate claim. But is there any option for an EOU to get refund of duty paid on capital goods used for manufacture of goods exported by it under bond ?

Thanx in anticipation.

Regards,

CS Kruti Parekh

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 28 January 2011

Originally posted by : Kruti Parekh
	Dear Sir, The procedure you discussed is applicable in case goods are exported under rebate claim. But is there any option for an EOU to get refund of duty paid on capital goods used for manufacture of goods exported by it under bond ? Thanx in anticipation. Regards, CS Kruti Parekh

EOU can procure capital goods direct from manufacturer without duty, however there is no such provision for specific capital goods duty refund in cash except the procedure discussed above.