Export under rebate - calculation of excise duty liability

Govindarajan (Manager) (109 Points)

10 August 2012  

Dear Experts,

A registered dealer who registered as manufacturer of Excisable goods (under rule no.9) Act is manufacturing readymade garments by giving job works, sells the goods thus manufactured and use to pay the excise duty collected from the domestic buyers after adjusting the input credits regularly.  

Now, if he had effected an export shipment last month under drawback scheme

1. Without paying Excise duty 

2. Without submitting ARE Forms

3. Without executing a bond

4. without executing a letter of undertaking

whether he is right if he declares the export shipment in ER-1 for the month of July as export under rebate and ready to pay the duty now with penalty for his ommissions.  If his action is right, what is the formula for calculating the duty portion and penalty.  Otherwise, what are the remedies available to rectify the lapses.

 

Regards,

Govindarajan