Export Without Payment of Duty

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Pbmangarolia (Querist)

06 February 2009 Ours is a Export oriented Mfg. Company.(Not 100%)
Total Turnover consist 70-80% Exports.

What are the ways for Refund of excise?
Is there any way so that We need not to pay Excise and avoid Refund procedure?

The other thing is that how can we avoid to pay excise on input raw materials which are used for Mfg. activity and the Final Product is sold out in Domestic as well as out of India.

Pls. give me the solution.

Rajesh Kumar

Rajesh Kumar (Expert)

07 February 2009 The simplest procedure is to bring in duty paid inputs, take cenvat and export goods under bond. cenvat taken can be utilised for payment of duty on domestic sales.
However, if this results in accumulation of cenvat; you should export goods on payment of duty and take rebate of duty paid on export. This is the simplest procedure.
Other procedure is taking refund of cenvat credit under Rule 5, taking rebate of input duty on export under rule 19 or procurement of inputs without payment of duty for export under notification 43/2001. Some amount of procedural problems are there in these things. However, for a continous export process, you can try to develop the procedure.

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