23 June 2011
"A" exported JFTC cable to srilanka in 2008 from their sister concern unit as "B". Srlanka Buyer rejected the material now after 3 years we have brings the said materils from srilanka to B unit with paid neccessary import duty. Now cable is totaly waste and we want to sale it as scrape. Now mater is that How much excise duty we have to paid on the cable which to be sale as scrape
25 June 2011
its case of FEMA, rather than customs and excise,
Once the payment of exports are realized by you, the goods are property of buyer, so it can be rejected and returned under normal situation within 180 days only (you have to inform DGFT and RBI immediately on such rejection information receipt)
in 3 years department will belive that cables are used and the life of cables are over, so it would amount to fresh import of goods.
Now its better to dispose the goods there in buyer's place itself, it will save your lots of time and duties.
28 June 2011
Thanks u very much sir, for your feedback on matter mentioned above.
I would like to ask one more thing here can we eligible to take cenvat credit against import duties paid & whether we need to raise excise invoice on transaction value or credit taken by us
04 July 2011
Export of goods is covered under Rule 18 & Rule 19 of CEx Rule'2002 & Rule 5 of CEx Rule 2004. If goods cleared under Bond/LUT, no excise duty payable & rebate admissible under Rule 18 of CCR'2002,if goods cleared on payment of excise duty, refund admissible under Rule 5 of CCR'2004. Rebate / Refund is subject to BRC from Bank which cannot be obtained in instant case.
Since, goods rejected by buyer, no realisation must have taken place & no refund/ rebate admissible. Hence, it is to be seen whether cables removed for export were duty paid on removal?. If so, goods returned will be subject to Rule 16 , & duty paid on removal can be recredited. If goods removed without duty, proportionate cenvat credit may have to be reversed, since export status cannot be established. Question of of recredit on import duty ie. CVD/ACVD etc, on rejected goods shall be on basis of amount in Bill of Entry. Cable to be sold as scrap, can be done on Transcation value. Lastly,information on rejection/resale to be submitted to jurisdictional AC/DC to avoid SCN from dept:.
CAclubindia
