26 December 2015
We manufacture packing bags and intend to supply them to a rice exporter without levying excise duty. The exporter will export rice using these bags. Can we do so under ARE 1 or ARE 2? Also, can we claim rebate under rule 18 of excise duty paid on inputs used in manufacturing of these bags?
31 December 2015
An Exporter can procure Inputs without payment of excise duty under Notification No. 34/2001. This Rule, Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 came into force with effect from 21/06/2001. The Government of India issued subsequent to this Notification for Conditions, safeguards and procedures for procurement of the excisable without payment of duty manufacture or processing of export goods vide Notification No. 43/2001 dated 26/06/2001 - See more at: http://taxguru.in/excise-duty/procurement-inputs-payment-duty-export.html#sthash.WmDJVwy1.dpuf or : Notification No. 19/2004 –CE (NT) dated 6.09.2004 prescribes the conditions and procedure relating to export under claim of rebate. This notification is applicable for Manufacturer exporter as well as Merchant exporter. - See more at: http://taxguru.in/excise-duty/rebate-duty-paid-merchant-exporter.html#sthash.zy8zyrUU.dpuf
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