Return of export goods

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CA Krunal (Querist)
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26 October 2012 Dear learned friends

Where goods exported on advance payment, customer intimated goods not acceptable, we also don't want to bring such goods in India as logistic cost would be higher.

Do we need to comply with any formalities before making payment to customer under custom, excise & FEMA.

Do we need to pay excise, VAT as such goods is exported without payment of the same

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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27 October 2012 Yes you have to file various returns and in case the goods have been declared defective then get is disposed in that country and file the return with RBI and bring the money within 6 months to avoid all penal providions under FEMA etc.

CA Krunal

CA Krunal (Querist)
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28 October 2012 Dear Mr.Agarwalji,

Thanks for sharing your view.

When goods is declared defective, customer will not make payment. And in our case payment is received in advance, hence the question of making refund arises.

Our concern is that do we need to pay Excise/s.tax & VAT as this goods has been exported without payment of duty

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 October 2012 https://www.cybex.in/Notifications/388-21-Return-Export-Goods-4742.aspx

CA Krunal

CA Krunal (Querist)
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30 October 2012 Dear Rameshji,

Thank for your view.

However this answer seems to be not relevant. In our case exported goods are rejected and same will not be brought into India and will be disposed off in the country where it was exported.

So in such situation whether any liability of excise & vat is applicable as goods are taken out of india but not used by customer and has been disposed off

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 October 2012 are u situated in SEZ/EHTP/STP/BTP??

CA Krunal

CA Krunal (Querist)
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30 October 2012 Dear Rameshji,

We are not situated in SEZ further we are not availing any other export incentive as well.

Even our case proof of export is also available, however facts remain that goods are rejected and disposed off outside India.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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03 November 2012 another option is for you to sell it another buyer up to 25% reduction rate will accept the RBI.

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