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munny query 000

Jagjeet Singh (ca-final) (174 Points)

18 January 2010

i have purchased yarn from reliance industries limited (punjab) they have also collcted excise in total assessable valu i am exporter of fabric manufactured fom this yarn whether excise can b refundable? (fabric is xcise free)

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3 Replies

sumithra (Student) (47 Points)
Replied 18 January 2010

Refund is

Getting back any duty/amount paid, but which is not required to be paid under the Central Excise law and getting back the duty paid on the goods exported/duty paid on the materials used in the manufacture of goods exported are refund.

If yarn is duty free, then you are eligible for refund.

Ashish Ojha (Chartered Accountant) (469 Points)
Replied 18 January 2010

under Rule 5 of Cenvat Credit Rules,

You can claim refund of that credit as you have used that input for product which is exported..

Just make sure that

You have not claimed drawback or

rebate under rule 18 of central excise rules..

All the best

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 19 January 2010

You can claim the refund on excisable inputs used in manufacture of goods which are exported out of india, even if the final product atttracts no excise duty.