Indirect export whether exempted for ssi limit

Dear Sheetal,

While computing the clearance of Rs.150 lakhs for the purpose of taking benefit of the Exemption notification, clearances meant for Exports shall not be taken into account.

According to the facts of your case clearance made by Y ltd to Z limited, if it was for meant for exports, shall not be considered for computing the clearance of Rs150 lakhs.

You may refer to the attachment below

Thanks so much sir.

Please let me know if ' CLEARANCES MEANT FOR EXPORTS' defined and if yes request you to please share the same. 

Regards

Sheetal

Please let me know whether Y ltd is the principal exporter? That is, whether Z Ltd is playing the part of a Job worker for Y Ltd and Y Ltd is exporting through Z Limited? What is the time period between the clearances and actual export?

I would let you know about the clearance meant for export.

Z ltd is the Merchant exporter i.e. Z ltd is raising the export invoice.

Y ltd is selling the Finished goods to Z ltd.

The goods are removed from the factory of Y ltd directly for export.

'CLEARANCES MEANT FOR EXPORTS' has not been specifically defined, but it is understood that clearance of goods which are ulitmately to be exported are clearance meant for export. In your case & with the facts provided by you, Sale by Y ltd. (Manufacturer) to Z Ltd. (Merchant Exporter) should not be considered for the purpose of computing the Limit of Rs.150 lakhs. But Y Ltd. will have to submit Proof of Export as received from Z Ltd. within 6 months of clearance. If this is not done, Such sale will be included in the computation of limit of Rs.150 lakhs and duty will have to be paid accordingly.

You may refer Part B (i) & (ii) of Proof of Export in Board's Circular 212/46/95-CX dated 20.05.96. Though I am not well aware of latest changes in this area, but the Circular will help you understand the whole procedure.

Quick link is given below:

https://www.cbec.gov.in/excise/cx-circulars/cx-circulars-96/212-96-cx.htm

@ Sheetal

subh exports made through "merchant exporters" are covered under "form H" under the VAT / CST rules, and the exporter furnish the form to manufacturer after the goods are shipped on board. 

these forms are enough for establishment that such goods are cleared for export purpose, and would be excluded from home consumption progressive value.

Whether we need to submit copy of  form VAT 15 to Excise department also as a proof of export.

Request if anyone can share the format of declaration to filed by SSI unit if the clearances exceeds 90 lacs.

What will happen if the clearances had already exceeded 90 lacs in the month of september and till now no declaration filed with department. 

format of declaration is below

https://www.cbec.gov.in/excise/cx-act/notfns-2k5/cent14-2k5.pdf

you have to fill column 4 for clearances for home consumption before sales tax/vat/cst.

no need to file any vat form to department, if they feel to check they can ask you specificaly to show the documents in support of your clearance for export.

But the below attachment (Refer point A and B under proof of eport) says that we need to submit the proof of export within 6 months from the date of clearance of goods.

https://www.cbec.gov.in/excise/cx-circulars/cx-circulars-96/212-96-cx.htm

Please advise.

the procedure is old and was applicable when declarant code number was in force. 

as you have not filed declaration till date, so no declarant code number with you, so you dont have to worry for above