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Excise duty Unutilise Certificate

Aashish Padol (EXCISE EXECUTIVE) (206 Points)

02 February 2011

Dear Expert

We had exported goods under ARE-1 (Merchant Export) As per CT-1 bond the amount of excise duty debited to bond a/c is Rs. 50000/- for this consignment (e.g. Qty 500000 nos) . But as we export only 400000 nos , so we show the amount of excise duty in ARE-1 as per proportion to 400000 nos only (e.g. 45000/-). We ask the consigner for proof of export, but he demand the unutilisation certificate of excise duty after that he will give the proof of export. (i.e. Bond Debit 50000 - 45000 = balance of excise duty is 5000)

My query is who shall give me the unutilise Certificate of excise duty ? so that i can co-ordinate with him & send the certificate to the consigner. And he will give the proof of export.

Thanks in advance.

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5 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 03 February 2011

Originally posted by : Aashish Padol

Dear Expert

We had exported goods under ARE-1 (Merchant Export) As per CT-1 bond the amount of excise duty debited to bond a/c is Rs. 50000/- for this consignment (e.g. Qty 500000 nos) . But as we export only 400000 nos , so we show the amount of excise duty in ARE-1 as per proportion to 400000 nos only (e.g. 45000/-).

- if 500000 units duty is 50000 then 400000 unit duty comes to 45000? please use simple calculators for excise purpose, it may be 40000 as per simple calculator.

- query is posted by whom? a) merchant exporter b) manufacturer c) C&F

- CT1 and B1 is generally liability of Merchant exporter,

We ask the consigner for proof of export, but he demand the unutilisation certificate of excise duty after that he will give the proof of export. (i.e. Bond Debit 50000 - 45000 = balance of excise duty is 5000)

- once the CT-1 is issued in favor of manufacturing unit, same is valid for 60 days and when the ARE-1 is signed by R/O, the utility of such CT-1 ends. so if any duty is remaining in CT-1 as excess, RO will record the same and intimate to the bond authority regarding the same, alongwith triplicate copy of ARE1.

- Now the confussion again arise, who is consigner? a) manufacturer b) merchant exporter c) any abc 3rd party? if merchant exporter is consignor then he is aware of the proceedings of triplicate copy to his bond authority, coz against this CT-1 nobody can clear goods except the merchant exporter.

My query is who shall give me the unutilise Certificate of excise duty ? so that i can co-ordinate with him & send the certificate to the consigner. And he will give the proof of export.

- there is no such certificate, the R/O of the factory will intimate the bond authority regarding use of CT-1 and balance remaining, and after the period specified, the credit goes back to principal bond, unutilized.

Thanks in advance.