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Duty free purchase & sale to merchant exporter.

Virendra Hardiya (Sr. Excise Executive) (48 Points)

29 July 2016

Hallo Sir,

I wish to know the way & procedures that, how can we purchase inputs without paying Excise duty as we are to sale our finished goods after manufacturing to Merchant Exports for purpose of Export.

We are a contraccual manufacturing Unit and currently take cenvate credit of purchased inputs and sales to marchent exporter for Exports against CT-1 bond.

kindly provide help.

Thanks (Virendra Hardiya)

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6 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 29 July 2016

/experts/procurement-of-inputs-without-payment-of-duty--867395.asp

Virendra Hardiya (Sr. Excise Executive) (48 Points)
Replied 29 July 2016

Sir,

This is not answer as per our situation.

1. We are not Direct exporter, we only export through marchent exporter,

2. Also we are not in specifide area OR warehouse to purches without excise duty.

kindly explane in easy way.

Thanks

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 29 July 2016

Please be specific with some more details, to get proper responce

Virendra Hardiya (Sr. Excise Executive) (48 Points)
Replied 29 July 2016

Ok Sir,

1. We purchases our inputs from many Compaies ("X"Y"Z").

2. We are "M" and manufacture our finished goods e.i."liquid injections".

3. We remove the finished goods to Marchant Exporter "O" against CT-1

Bond received from "O".

4. "O" provide us proof of exports/Form-H.

in the above example we "M" take cenvat credit come from "X"Y"Z", But we do not pay excise against CT-1 exports. Therfore our cenvat credit is not usfull for us. So we wish to procure inputs without Excise payment from "X"Y"Z".

please show the way...Thanks

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 01 August 2016

https://centralexcisechennai.gov.in/Notifications/notfn432001.htm

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 01 August 2016

Get in touch with your Juridictional Technical Superintendent, ARE-2 may be used to procure the input without payment of duty by the processor/manufacturer, a detailed consumption ratio would be needed to get approved by the department before allowiing such facility and ensure the revenue safety