Go Ad-Free on CAclubindia with Daily WhatsApp Updates. Subscribe Now!

Refund of excise on export

Bijay (Director) (24 Points)

12 July 2012

Dear experts

we are trying to buy a vehicle from reputed dealer and export it to overseas, how can we get excise duty refund?

Reply
Follow
Share

2 Replies

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 12 July 2012

If you are a dealer registered under central excise, you can claim rebate under Rule 18 as a merchant exporter.

Where exports are by Merchant Exporter, a Disclaimer Certificate in favour of the Exporter should be taken on each copy of ARE-1. According to the Circular 508/04/2000-CX dated 14/01/2000, it is clarified that “there is no bar on the merchant exporters to file rebate claim and with the Assistant Deputy Commissioner (Divisional Officer) having jurisdiction over the factory of manufacture of said goods and receive the rebate, provided the manufacturer gives the 'disclaimer' certificate. The AR-4 (Currently it is ARE-1) should be generated in the factory of said goods and duly signed both by the manufacturer and the merchant-exporter.” The Merchant exporter can claim rebate under Notification No. 19/2004.

Or, You can buy under CT-1 without payment of duty, then there is no qustion of refund arises.

Upgrade to CAclubindia Pro. Subscribe Now!

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 13 July 2012

obtain the vehicle from manufacturing point "without payment of duty" by furnishing B-1 Bond/ CT-1/ ARE-1" it would be helpful to finalize the transaction under the method, otherwise the duty paid at manufacturing point and sold through showrooms, would not entitle for refund as the showroom does not maintain records for the purpose.