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Duty drawback

RAJAGOPALAN L J (CONSULTANT) (32 Points)

11 March 2012

THIS IS L J RAJAGOPALAN. I CAME ACCORSS A DIFFERENT SITUATION. ONE OF MY CLIENT IMPORTED SOME

MACHINERIES FROM ABROAD IN 2010-11 AND TRYING TO START PRODUCTION. DUE TO SOME BAD SITUATION HE IS

NOT ABLE TO START PRODUCTION. HE IS FORCED TO WIND UP. TILL DATE HE WAS NOT TAKEN CREDIT OF THE EXCISE DUTY AND SERVICE TAX PAID, AS WELL AS IMPORT DUTY. NOW HE IS IN A SITUATION TO EXPORT THE MACHINERIES (WHICH ALREADY ERECTED AND TAKEN TEST PRODUCTION) TO NEIGHBOUR COUNTRIES.

I HAVE THE FOLLOWING QUESTIONS?

1. WHETHER WE HAVE TO SUBMIT THE RETURN MAY BE REWISED TO CENTRAL EXCISE (ORIGINALLY THE CLIENT SUBMIT NIL RETURNS)?

2. HOW TO ADJUST THE DUTY HE PAID AT THE TIME OF IMPORT?

3. WHAT IS THE FORMALITIES TO EXPORT THE MACHINERIES TO OTHER COUNTRIES.

THANKS.

LAKSHMI ENTERPRISES.

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3 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 12 March 2012

1. He dones not need to do anything to returns, as he has not taken cenvat credit on machines.

2. all duties and taxes paid in relation to import would be capitalized with the machine cost.

3. he can export the machines on plain commercial invoice, as the cenvat credit is not taken, hence no excise duty is payable,

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RAJAGOPALAN L J (CONSULTANT) (32 Points)
Replied 12 March 2012

THANKS FOR THE RESPONSE.

CAN MY CLIENT ABLE TO GET THE DUTY DRAWBACK?

AND HOW?

THANKS

L J RAJAGOPALAN.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 March 2012

as the goods are imported only and not manufactured from the duty paid inputs, the question of duty drawback looks tough, however you have to get in touch with your CHA for specific duty drawback norms on your items.