Duty free purchase & sale to merchant exporter.

Hallo Sir,

I wish to know the way & procedures that, how can we purchase inputs without paying Excise duty as we are to sale our finished goods after manufacturing to Merchant Exports for purpose of Export.

We are a contraccual manufacturing Unit and currently take cenvate credit of purchased inputs and sales to marchent exporter for Exports against CT-1 bond.

kindly provide help.

Thanks  (Virendra Hardiya)

Replies (6)

/experts/procurement-of-inputs-without-payment-of-duty--867395.asp

Sir,

This is not answer as per our situation.

1. We are not Direct exporter, we only export through marchent exporter, 

2. Also we are not in specifide area OR warehouse to purches without excise duty. 

kindly explane in easy way.

Thanks

Please be  specific with some more details, to  get  proper  responce

 

Ok Sir,

1. We purchases our inputs from many Compaies ("X"Y"Z").

2. We are "M" and manufacture our finished goods e.i."liquid injections".

3. We remove the finished goods to Marchant Exporter "O" against CT-1

    Bond received from "O".

4. "O" provide us proof of exports/Form-H.

in the above example we "M" take cenvat credit come from "X"Y"Z", But we do not pay excise against CT-1 exports. Therfore our cenvat credit is not usfull for us. So we wish to procure inputs without Excise payment from "X"Y"Z".

please show the way...Thanks 

https://centralexcisechennai.gov.in/Notifications/notfn432001.htm

Get  in  touch with your Juridictional Technical Superintendent,  ARE-2 may be  used  to  procure the input  without  payment  of  duty by the processor/manufacturer,  a  detailed  consumption ratio would  be  needed to  get approved by the department  before allowiing such  facility and  ensure the  revenue safety

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