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Excise duty levy or not

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Dear Experts, Appreciate if you could advise on below Query: We have received an order for supply of Machinery parts from one of the Canadian Company and we will be receiving entire amount in foreign currency. However the goods which we have to supply are part of one machine which will be assembled by another company within India. Now the problem is that we are not exporting goods directly to the Canadian Company instead we will remove goods from our factory to other company in which they will assemble and sell the final Goods. Both the companies has received separate order however final product would be despatch by second company after the goods are assembled My question is how can we avoid paying excise since the final product will be exported.
Replies (2)

The second company can send the raw material to you under job work u/n 214/86.

 

You need to supply with excise and that co needs to avail the credit and go for refund or use the credit for domestic duty payment. 

Sir both the companies have received a separate order for their product. The product manufactured by us is the raw materiral for other company who will use that to manufacture final product and other party is not going to remit us any payment and declining to issue CT-1 as well. Is there any way where we can show it as export


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