Export from 2 factories

638 views 1 replies
Dear Members, I need clarification on excise matter for the following situation. 1. We are manufacturer exporter based out of UP and have an export order. 2. The product is such that major parts will be manufactured by us in our factory. 3. Some parts are bought out(from manufacturer in Mumbai) which need to be exported 'as it is' and do not need any manufacturing to be done. In other words, the parts from our factory and manufacturer in Mumbai will be exported in dismantled condition. I need advice on following doubts; a. Can I get the parts from Mumbai manufacturer in our factory in UP for trial purpose without payment of excise and sales tax? If yes, is it necessary to return the parts back to Mumbai manufacturer? b. As the final export documents (commercial invoice, packing list etc.) will be made by us, can we export in 2 lots - one from ICD Delhi and other parts from JNPT? In this case, export from our factory will be as manufacturer exporter and against ARE1 and we will be merchant exporter for export from Mumbai manufacturer. c. As merchant exporter, is the CT1 bond to be submitted by us in central excise of our jurisdiction in UP and then submit the CT1 certificate to the manufacturer in Mumbai? AM I right in saying this? Hence, excise duty will be NIL when Mumbai manufacturer makes invoice on us. d. We submit H form to Mumbai manufacturer against proof of export so that Mumbai manufacturer will invoice us with NIL Sales tax. e. Lastly, if we decide to ship as one consignment by bringing the parts from Mumbai factory to our factory, how to avoid payment of excise duty and sales tax to Mumbai supplier? Sorry for the lengthy post and thanks in advance for a detailed and clear reply.
Replies (1)

read the post in sequence 

1) look into your export order, and examine that whethar its for full plant or partwise supply and valued? 

2) if full plant then you have to buy the goods from mumbai on payment of duty, take cenvat credit and retain the same in your input credit but clear the goods in whole under claim of rebate or without payment of duty under CT-1/LUT. here the CST is dead tax, while the excise is realizable.

2a) if the order is for parts, and valuation is not mixed up then you can export the mumbai goods as merchant exporter, while your goods as manufacturer exporter. here you dont have to pay excise or CST( CT-1, and form H required for exemption), but you have to take gods from factory direct.

3) there is no way to bring the goods to your up factory from mumbai without duty and CST. the only possible procedure as mentioned 2) above is possible for your best convenience.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details