Excise duty in are-1

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CS P K Pandey

employed

66 Points Posted on 25 April 2012

We have a manufacturing unit in Uttarakhand, and availing notification 50/2003 dated 10.1.2003 and exempted from excise duty for 10 years.

We are exporting goods to SEZ and in ARE-1, we are not showing excise duty. But the customer is insisting to show the excise duty in ARE-1to show duty forgone.

My query is whether it will be right to show excise duty in ARE-1, inspite of the fact that this exemtion has already been granted. The duty is not forgone for the purpose of export?

Please reply asap.

Replies (4)

Prateek Agarwal

Sr. Executive - Finance & Accounts

1846 Points Posted on 25 April 2012

Hi,

You have to mention the amount of duty involved on the front page of ARE-1 even though you are exporting the materials to a SEZ Unit.

Regards

Prateek

CS P K Pandey

employed

66 Points Posted on 25 April 2012

But dear,

Excise duty is not applicable in Uttarakhand. We are availing exemption not based on export, it is exepted for ten years for our unit, whether it is export, deemed export or DTA dales. We are not liable for duty.

Prateek Agarwal

Sr. Executive - Finance & Accounts

1846 Points Posted on 25 April 2012

Then mention the amount of duty exempted.,

HS Negi

Senior Executive- F&A

617 Points Posted on 02 May 2012

Dear Mr. PK Pandey

Since you are availing the exemption form payment of excise duty under Notification 50/2003-CE, you are no need to issue the form ARE-1. You are out the purview of excise net . You can not claim or charge the cenvat.

The issuance of Form ARE-1 are needed for those who are in the tex net. For availing exemption excise duty for export (including supply to SEZ), they furnish the LUT with department and provide them Proof of export within a stipulated time.

Since SEZ unit is located in India and you are also in India, then you can clear the goods under exemption to SEZ..

Hope the querry is resolved.

Regards

HS Negi