Should we reflect removal of goods to exporter in er-1



Dear Sir / Madam

We are manufacturer of Gases (Oxygen, Nitrogen & Argon). We are salling Argon to a party at Kolkata and goods removed from factory through excise invoice with duty to his address at Kolkata but party exported goods to Bangladesh in his ARE-1 and using our stamps in manufacturer column and Authorised signatory but signing his his on behalf of us. Now they claim rebate of duty and our range office asking about we are not reflecting this removal in ER-1 as export under rebate. We are submiting our statement as we are removing goods to a domestic clearance and duty paid on same. Now CE Range super telling he will issue SCN for not showing export in ER-1. Now the query is-

1) Should we reflect such clearance in ER-1 as export under rebate

2) Range super asking for a letter regarding using of excise invoices from 001 to ........ for FY 2016-17 separtely showing domestic invoice and excise invoice serials (we have no export except that particulare party and we have no separete export invoice till date)

3) Should we stay in our statement as we are salling to that party as domestic clearance.

Matter is urgent, kindly advise me as soon as possible. 

Regards

A K Tiwari

 
Reply   
 
Executive Excise

It is getting confusing your query, actually it understood that,

if you are a MFR and Kolkata party is Exporter means, this activity comes under CT-1 Export he should obtain CT-1 from his division.

 
Reply   
 

As I understand that you are removing the goods to Calcullta Agent,on pament of excise duty. That means you are selling the good in Domectic market only. Your agent in Calcullta is exporting the goods, under claim of rebate. For the purpose of claiming rebate, he is asking you to put your signature on ARE.1 and Range Supft, is in hurry to issue SCN. With this understanding, we reply to your each query.

1) Should we reflect such clearance in ER-1 as export under rebate.

In this particular case/circumstances, you have sold the goods into domestic market only, for the reason that your Kalkatta Dealer has taken physical delivery of the goods.ER.1 is a periodical return of what is manufactured by you and what is removed by you. What you had manufactured and what you have removed to your Kolkatta Dearler needs to be mentioned in yoiur ER.1 and that you would have certainly mentioned. Removal for export, under claim of rebate is initiated by your Kolkatta Dealer and therefore export under Claim of rebate need not to be mentioned in your ER.1. Kolkatta dealer has wrongly taken your signature on ARE.1, as a manufacturer. If the goods would have not been removed from your factory gate, it would have been alright.

2) Range super asking for a letter regarding using of excise invoices from 001 to ........ for FY 2016-17 separtely showing domestic invoice and excise invoice serials (we have no export except that particulare party and we have no separete export invoice till date)

Range Supdt. is correct that in the beginning of each Financial year, every manufacturer is required to disclose different series of Invoices. That eventhough you may not have export, there is no harm in disclosing Sr.No...1 to......(for Domestic) and Sr.No.1 to.... (for Export).

 

3) Should we stay in our statement as we are salling to that party as domestic clearance. 

You are 100 % correct that it is your domestic sale and you must stick to it. Eventhough you may be pressurised for amendment or revised ER.1, you are not required to do so.

 
Reply   
 
Sr. Officer - Central Excise/Cash

It is like a Merchant Export.

You mentioned as Domestic sales - It is correct.

Your dear asking sign from you in ARE-1 to claiming rebate - it is also correct.  He is eligible to claim rebate what you paid for that goods.

Either you or your dealer can claim rebate from the dept.

The range offiicer would give the duty paid particulers to claim issuing authority to sanction the amount.

 
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