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Export of Inputs under Claim of Rebate

Sameer (.) (252 Points)

19 August 2009

Please clarify, whether "Inputs can be exported under claim of Rebate" ? if yes under which notification rule etc. its provisions and procedures are covered.

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6 Replies

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 19 August 2009

Yes. Procedure is same as export of any other goods, i.e. ARE-1 procedure.

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Sameer (.) (252 Points)
Replied 20 August 2009

sir can u through some more light, if inputs procured on payment of duty has been exported as such, can we claim rebate on such duty. Request you to please provide some reference to notification etc. as we could not find anything regarding export of inputs under claim of rebate.

Regards

Sameer

JOLLY OZA (EXPORT EXECUTIVE) (63 Points)
Replied 27 August 2009

Originally posted by :Rajesh Kumar

Yes. Procedure is same as export of any other goods, i.e. ARE-1 procedure.

Hello Sir,

If I am taking excise rebate claim ,than am I applicable for DEPB Drawback, as I have read that only one drawback can be taken whether Rebate or DEPB.

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 27 August 2009

@ Sameer

Yes. The relevant excise notification 19/2004 is applicable to all excisable goods, whether manufactured or not. Once duty is payable, goods becomes excisable, even when duty is payable under a deeming provision [Rule 3(5) of the Cenvat Credit Rules].

Even otherwise duty paid goods (input in this case) can be exported by the buyer as per CBEC Circular No. 294/10/97 dated 30.1.1997. Export of partially processed duty paid goods are also allowed vide CBEC Circular 155/66/95 dated 17.10.1995.

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 27 August 2009

@ Jolly

Rebate is of two types- on export goods under Rule 18 and on inputs used in manufacture of export goods under Rule 19.

DEPB or Drawback grants refund of duty paid in inputs used in manufacturing of export goods. Thus if you are taking rebate under Rule 19 (or procured goods duty free under rule 19), you will not get drawback of excise portion.

DEPB has nothing to do with excise- it is refund of custom duty paid on inputs- thus DEPB is available even if you are taking rebate on inputs.