Export to nepal country

From 01.03.2012 onwards, exports to nepal are in par with exports to other countries.  You can export goods to nepal without payment of excise duty.  Or if you have accumulated cenvat credit, you can pay excise duty on exports to nepal and can get rebate from the department.  But till 01.03.2012, you need to pay excise duty on exports made to nepal.

Thanks Mallika\harjun for your expalianation

"Or if you have accumulated cenvat credit, you can pay excise duty on exports to nepal and can get rebate from the department."

But why would an enterprise like to utilise its Accumulated Cenvat Creadit if its already not required to pay excise duty on exports.

CIRCULAR NO 958/1/2012-CX, Dated : January 13, 2012.  You need to pay excise duty on clearances made to Nepal till 01.03.2012. 

Hi Aashish,  If a company is having accumulated cenvat credit, it means the company is having an asset which cannot be converted into cash.  Its like Non performing.  If it utilises the credit for payment of excise duty on exports i.e., it passes one book entry by reducing the cenvat credit and gets rebate in form of cash from the government.  i.e., the company converts accumulated cenvat credit into cash.