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Question Regarding Central Excise

Hardik Dave (IPCC and CS Professional(FINAL) Student) (15533 Points)

01 July 2011

1 new unit is establish. They will received 1st order of SEZ, IN LAW EXCISE, 1st Amount Rs. 1,50,00,000 excise is exempted, Average Excise value is Rs. 24,00,000. That Rs. 24,00,000 excise is saving and it will back again as INPUT CREDIT, if business close, One can get refund ?

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3 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 02 July 2011

to get back the excise duty, you have to pay duty on clearance and claim "rebate" otherwise it will lapse.

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DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 02 July 2011

Refer Rule 5 of Cenvat credit rules. It should answer you query. As per this rule credit on the inputs used for manufacturing goods for exports for any reason could not be utilised than refund is allowed subject to safeguards and limitation issued.

Regards

Dayananda

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 02 July 2011

Originally posted by : DAYANANDA K N
	Refer Rule 5 of Cenvat credit rules. It should answer you query. As per this rule credit on the inputs used for manufacturing goods for exports for any reason could not be utilised than refund is allowed subject to safeguards and limitation issued. Regards Dayananda

The query posted is availing exemption of 1.5 cr, then clearance to SEZ, under this situation if duty is not paid, means lapse of input credit. as the manufacturer under notification 08/2003 is not eligible for input credit, but if he like to pay duty on sez clearance under ARE-1/2/3 as the case maybe, on export invoice, under "claim for rebate of duty",