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Rebate of Excise duty for export

Jayesh Laddha (Article Assistant) (33 Points)

13 September 2011

Please give suggestions on this query, I am manufacturing goods and selling it to a domestic party who exports the goods purchased from me. So the pary wants me to sell him goods without excise duty. What are the provisions and forms in this regard.

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4 Replies

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 13 September 2011

Check whether party is an unit setup under EOU/EHTP/STP/BTP scheme. If yes than you can do the clearance without payment of duty under CT3 certificate provided by the buyer.

For full details on the above refer CBEC circular No.851/9/2007-CX dated 3rd May 2007.

Regards

Dayananda

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Jayesh Laddha (Article Assistant) (33 Points)
Replied 13 September 2011

no the unit is not an unit setup under EOU/EHTP/STP/BTP scheme

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 13 September 2011

If party is not unit setup under EOU/EHTP/STP/BTP scheme than you can clearnce the goods without payment of duty on the basis of CT-1 certificate provided by buyer.

For full details on the above refer Non tariff excise notification No.42/2001 dated 26th June 2001.

Regards

Dayananda

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 15 September 2011

The buyer ( merchant exporter) has to execute a bond ( B-1) with maritime commissioner or division, and get CT1 in your favor for the duty involvement.

you can clear the goods on the strength of CT-1 received, under cover of ARE-1 submitted by merchant exporter, under excise supervision ( self sealing is not allowed for merchant exporter unless specifically granted to them), without duty.

an intimation is to be given to R/O for supervision of export cargo minimum 1 day in advance to depute their inspector at factory for checking and sealing of export cargo and endorse the documents.