Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Central Excise formalities on replacement of exported goods

960 views 1 replies

Tapas Kumar Sinha

DGM-F&A

33 Points Joined April 2009

Dear Sirs,

We have exported capital goods to Nepal under bond without payment of excise duty.As per our Warranty Policy ,now we are to replcae a major component as it is not repairable. I shall be highly grateful, if any body guide me about relevant law and procedure under Central Excise and Customs Act.

Thanks & Regards

Tapas

Replies (1)

Guest

Once u export the goods under bond you are claiming exemption from Custom duty under Notification 96/1996. Once such goods are rejected and return to India you cannot avail the benefit of 158/1995, Hence i think u may have to pay custom duty on the same.

Case Law Reference: Indian Rayon & Industries Ltd 2008 (229) ELT 3 (SC)

Please refer the notifications and the other posts for a determinative opinion