Recredit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2012 Sir,

We have issued B-1 General bond our excise deparment for merchant export purpose. We have issued CT-1 form to our supplier for procuring goods for export

Finally procured goods we have export to our customer through our CHA, We also received all proof of documents and endorsed triplicate pink copies form our suppliers the same documents we have to submit annexure 19 for POE.

so my query is how credit cenvat duty we have dabit in CT-1 and recredit for further shippment.

Thanks
Pramod Mane

CA Suresh Jain

CA Suresh Jain (Expert)
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11 September 2012 It looks that you are referring to the CENVAT duty debited in Bond to be re-credited on submission of POE. The amount can be credited immediately on submission of POE

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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20 July 2025 Explanation:
CT-1 Form & Excise Duty:
When your supplier supplies goods against CT-1, they do not charge excise duty on those goods.
You, as the recipient, cannot take CENVAT credit on these goods since no excise duty is paid by the supplier.
Merchant Export & B-1 General Bond:
When exporting goods under B-1 bond, the goods are exempted from excise duty on export.
Since no duty is paid, no excise duty credit arises at your end on these procured goods.
CENVAT Credit Debit and Re-credit:
At the time of procurement under CT-1, you do not debit CENVAT credit, because you are not paying excise duty on goods.
When the goods are exported, there is no duty paid or credit involved, so no question of debiting or recrediting CENVAT arises.
However, you must maintain proper records and submit Annexure 19 along with proof of export to validate the transactions under the export bond.

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