Excise duty

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NARESH (Querist)
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04 February 2013 Dear Sir,

I have certain clarification, please find the below points,

‘A’ is an export company, if they want to export the material to other country. Since, ‘A’ is purchasing from ‘B’ (other state) & exporting.

In this case, ‘B’ will charge ED 12.36% + 2% CST. If ‘A’ wants to avoid these duties & taxes (without taking credit in CENVAT) in this case is it possible to avoid certain taxes by export the material directly from ‘B’ to customer place (Abroad)- ‘A’s customer site and mention in Invoice as Customer is ‘A’ (INDIA) & delivery address is other country.

Please let me know what and all major documents to be done by ‘A’ from central excise department for shipment.

Your earliest & valuable feedback is highly appreciated.

Best Regards
Naresh

Arun Kumar Singh

Arun Kumar Singh (Expert)
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06 February 2013 Manufacturer-cum merchant exporter is required to execute a bond so that goods can be cleared by the supplier manufacturer without payment of duty. The bond can be executed by merchant exporter in form B-1. If bond is executed by merchant exporter, he will obtain certificates in form CT-1 from Superintendent of central excise. Goods can be cleared by manufacturer on the strength of this certificate, without payment of duty.

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